US Automaker Bailout Debates Heat Up, GM CEO Gets Raise
Discussions continue to flare tensions in Washington over what will happen to the US automakers. GM CEO Rick Wagoner received a 33% pay raise for 2008 yet still pleads for government help.
Will a $25 Billion energy loan turn into bailout money or will the TARP fund dedicated to banks yield an extra $25 Billion in bridge-loans to prop the total to $50 Billion?
There are a lot of great articles circulating the web today regarding the matter.
- Why Bankruptcy is the Best option for GM – WSJ
- Detroit Bailout, 7 Key Questions – CNN Money
- 6 Steps to restructure GM – Blogging Stocks
- Why a Big Three Bailout is Driven to Fail – Yahoo Finance
- How Bankruptcy Would Benefit GM – Yahoo Finance
Rick Wagoner Gets a Raise Anyway
What I find hard to believe is that even with all of the current pleading from auto makers and the absurd amount of money they are losing, GM’s CEO Rick Wagoner still managed to get a pay raise this year.
From the WSJ Journal:
Although GM has been losing money since 2005, CEO Rick Wagoner got a salary increase this year. At Ford, Chief Executive Alan Mulally has come under fire for a rich pay package even though the company is losing money and pulled back from a pledge to return to profitability next year.
The Securities and Exchange Commission filings reported earlier this year that gave Mr. Wagoner, the company’s chairman and chief executive, a 33% raise for 2008 and equity compensation of at least $1.68 million for his performance in 2007, a year for which the auto maker reported a loss of $38.7 billion. The salary increase puts Mr. Wagoner’s salary for this year at $2.2 million, compared with $1.65 million in 2007.
In addition to his base pay, Mr. Wagoner was been awarded 75,000 restricted stock units valued at $1.68 million, based on GM’s closing stock price in March. He was also given stock options representing 500,000 shares.
What is wrong with this situation?
Source:
GM, Ford May Setup Caps on Pay
Wall Street Journal
Matthew Dolan
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