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Ailing GM hands boss mega pay rise
Evening Standard 28 Apr 2008
Despite a record loss, General Motors chief Rick Wagoner saw his pay packet swell by 41% to $14.4 million (£7.3 million) last year.
That included $1.6 million in salary with the bulk of the increase coming from incentive-plan payments.
GM made a net loss of $38.7 billion last year. The ailing carmaker also posted losses of $1.98 billion in 2006 and $10.4 billion in 2005.
Wagoner still lags the $21.7 million Ford is lavishing on its new chief executive Alan Mulally.
GM, which was caught with a stock of petrol-thirsty SUVs and pick-ups just as the oil price began to soar, has slashed annual costs by $9 billion in the past two years, persuaded more than 34,000 union workers to leave and negotiated a contract that halves pay for future workers.
It is on the sales side, however, that GM suffers. Last year they fell 6%, more than double the industry's 2.5% decline.
In addition to his salary, Wagoner received stock and stock option awards that GM valued at $6.34 million, $1.8 million from the incentive plan, $4 million in increased pension value and deferred compensation, and other pay of $697,358.
His total package for 2006 was $10.2 million, GM said.
Reader views (1)
I am disgusted at the money these men are paid! How on earth can any job justify a salary of £7 million. I bet they have no idea what conditions the staff work in or even care. Isn't it about time they thought about the amount of people that will be out of a job when the factories close down through the 'losses'. It is nothing more than greed and selfishness.
- Ruth Redman, Bedford, 01/05/2008 10:53
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