Hoovey689

iTrader: (16)

Treasury orders executive pay cuts at GM including CEO Akerson

The Detroit Free Press reports that the United States Treasury has exercised its power to put a cap on executive compensation at General Motors by freezing CEO Dan Akerson's pay at last year's levels. Akerson brought home a total of $9 million last year including salary, stock and restricted stock.

The executive's $1.7 million salary will remain unchanged this year, with the rest of his earnings coming via performance-based stock salary. Meanwhile, some 25 of the company's most highly compensated executives will also see their compensation limited for 2012. All told, the Treasury says executive pay dropped by around 12 percent from 2011 to 2012.

GM has warned meddling with executive pay could result in a talent exodus from the company, but so far, The Detroit Free Press reports only two leaders have walked away from the automaker. GM says the cuts may also make it difficult to hire new talent moving forward.

GM currently owes the U.S. Treasury around $25 billion.

How does Akerson's pay line up with other auto executives? Chrysler CEO Sergio Marchionne takes home a combined $22.2 million for his efforts both at the American automaker and Fiat while Ford CEO Alan Mulally earned an impressive $29.5 million in 2011.

http://www.autoblog.com/2012/04/09/t...g-ceo-akerson/

Hoovey689

iTrader: (16)

yeah cause hundreds of thousands of dollars ain't enough

jimbosr1

dam,how is this guy going to eat!

I8ABMR

poor SOB. How is he going to eat...

I cant feed a bird on $9,000,000 a year

Trexus

Government Motors still owes the U.S. $25,000,000,000.

I think Akerson needs to get canned just like Rick Wagnoner and Frederick (Fritz) Henderson. They did nothing positively good or great for GM...

bitkahuna

iTrader: (20)

as you can see their pay is low compared to ford and chrysler. and i've no doubt it's a TOUGH job. and if the govt had never gotten involved, no one would have any right to say how much is 'enough'. but this meddling can only lead to a mess.

with a real restructuring, not the govt rip off and uaw payola that took place, the govt would not still be owed 25b.

FrankReynoldsCPA

^^this.

As long as there are other companies willing to compensate a CEO more than what GM is, they will have a hard time retaining talent, and that's the truth. It's human nature to want more. Am I saying that I think they need their $9,000,000 salaries? No. I'm just saying that that is business. It disturbs me that the government is in a position to be able to set people's salaries. We should never have bailed out GM.

Hoovey689

iTrader: (16)

for a couple hundred grand I'm willing to give it a shot

J.P.

didnt gm say they paid all the money back?

Trexus

Government Motors paid some of it back not all of it. Orginially GM received $50 Billion...

bitkahuna

iTrader: (20)

they said it but were disingenuous. what they paid back was some of the money, ahead of when that part was due. they still owe a PILE

J.P.

I recall all the TV ads they had

then read this

anthrax144

I think the lower level GM employees disagree with you. If it weren't for the government bailout, the company would have likely gone under. The CEO's pay would be ZERO and thousands of employees would be out of jobs. Nobody forced GM to take the bailout money.

However, personally, I agree that the government should not be in the business of private industry bailouts.

Jewcano

iTrader: (4)

And....the market would've operated as should. As well, if they were going to go under, I'm sure other companies would've bought them up. Companies like VW might have invested money or purchased the older factories. But we'll never know what will happen now will we?

mmarshall

That's partly what's wrong with the auto industry. The top guys in the buisness should be there because, like Bob Lutz, they love cars, not money. I seriously question one's committment to his or her job if a few more potential dollars from another firm will lure them away that easily. Some things in life are more important than money, including loyalty, commitment, and a dedication to the job.



While that's true in some cases, I generally don't agree with it. As long as makes enough money (like I did) to satisfy their basic needs, and retire comfortably (like I did), the endless pursuit of more and more just gets people in trouble...they become obsessed. That's why the Scriptures warn that the love of money is the root of evil.


Nine million dollars is a long way from this:





Government sets millions of salaries every day.....including their own. Mine was one of them.

I agree, though, that in a free-market economy, government should not have power over everyone's salary. To do so would turn us into Communism.


Though I'm not an Obama fan by any means, I also have to disagree here. The Chevy Cruze, the upcoming Impala/Malibu, and the excellent Buick Verano (among others), are all three testimony to the good effects from GM's restructuring. I like the Verano so much I'm seriously considering a purchase.

The one bad effect from the restructuring, IMO, was Saturn's loss......but Saturn had already been pretty much ruined after 2000 anyway. In the 1990's, though, with the original S-series cars, they were a superb division....one of the best things that ever happened to GM.