GM CEO: No raises next year...also wants U.S. to ease execs' pay rules

[The Straight Story]

WASHINGTON -- General Motors CEO Dan Akerson said Friday he wants the U.S. government to relax rules for compensating some executives in the aftermath of a successful initial public offering that significantly reduced Treasury's stake in the company.

Speaking at the Economic Club of Washington, Akerson said he's worried about losing top talent to other companies now that GM has reversed its fortunes after a quick trip through bankruptcy and -- he believes -- is on the road to sustained profitability.

He declined to say who might be leaving and what exactly he'd like to see the Treasury do, but there are strict guidelines for the government to sign off on executive compensation to companies that received funding under the Troubled Asset Relief Program. GM received $50 billion, though the U.S. government's stake in the company was reduced by about $23 billion in last month's initial public offering.

Meanwhile, Akerson said GM salaried employees will not receive pay raises in their base salaries next year. He said he is considering giving managers incentive pay and, as a courtesy, has broached that idea with UAW leaders, whose contract expires next summer.

Treasury spokesman Mark Paustenbach said acting special master for executive compensation Pat Geoghegan gets requests like Akerson's routinely under TARP.



Read more: GM CEO Akerson wants U.S. to ease execs' pay rules | freep.com | Detroit Free Press http://www.freep.com/article/20101211/BUSINESS0101/12110308/GM-CEO-Akerson-wants-U.S.-to-ease-execs--pay-rules#ixzz185cza0a0

[hobbit709]

1. no raises for workers, then no raises for management.

Cuts for workers, then same percentage cuts to management.

Of course all peons get is wet and yellow.

[aquart]

2. Unfuckingbelievable.

What these assholes think they're worth.

[Autumn]

3. Question is, will the government say ok?

That will be the icing on the cake if they do.

[Bandit]

4. I don't see the Administration having a problem with that as long as workers wages are kept low.

:shrug:

[raccoon]

5. That's what really pisses me off; whenever politicians, CEO's, pundits talk about "austeritly"

or "sacrifices," they mean, for everyone EXCEPT them. :grr: :puke: