20 Votes

Is This Fair? Fed Slashes Salaries Of Executives That Took Federal Funds

Agent009 submitted on 10/22/2009 Official Bell & Ross Timestamp: 3:30:32 PM

25 user comments | Category: Misc News | Source: | SOURCE: www.detnews.com

The U.

S. Treasury this afternoon unveiled sweeping pay cuts for the top 25 executives at seven companies that received government bailouts, including General Motors Co., Chrysler Group LLC, GMAC Inc. and Chrysler Financial LLC.

In nearly all cases, salaries for the executives will be no more than $500,000 annually. No one at Chrysler will earn more than $500,000 in salary, and the company's CEO Sergio Marchionne will receive no salary from Chrysler, but be paid by Fiat SpA.

GM's president and CEO Fritz Henderson will see his $1.26 million salary cut to no more than $950,000. Just one other employee will receive more than $500,000 at GM in salary.

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Is This Fair? Fed Slashes Salaries Of Executives That Took Federal Funds

About the Author

"If everything seems under control, you're just not going fast enough."
— Agent009 (View Profile)

User Comments

Yes!
— PerformanceGuy (View Profile)

Posted on 10/22/2009 3:59:51 PM | reply to this comment | Votes: 12

wow $42,000 a month probably $35-$37,000 after taxes A MONTH......it must be nice
— B7FAN (View Profile)

Posted on 10/23/2009 2:42:48 PM | | Votes: 1

Well if you have to go on to life support because of your leadership then I tend to agree you have to pay the price.

I think they call that accountability.
— Agent009 (View Profile)

Posted on 10/22/2009 4:10:20 PM | reply to this comment | Votes: 9

are you kidding?? HELL TO THE YEAH it is fair!! how much do those douchebags get paid? FOR WHAT??? bankrupting the industry so we had to bail them out?

cut their pay and make them live in tents for all I care.
— DinamoR (View Profile)

Posted on 10/22/2009 4:10:36 PM | reply to this comment | Votes: 10

Sorry, but they minute they stood on the Capital steps begging for a handout, and they took the handout, then they became subjected to how much the tax payers think they are worth.

Since they ran the companies into the toilet, pay them the same as they pay their janitors.
— Invisible (View Profile)

Posted on 10/22/2009 4:25:57 PM | reply to this comment | Votes: 9

It does suck that our American Government is stepping all over businesses and telling them what they can and cant do. It is the antithesis of everything America, freedom, capitalism, and our constitution stands for.

However..........

Sucky as that may be, these companies made a deal with the Devil. You get in bed with snakes, you are going to get bitten. They took money from the government to get bailed out, all bets are off.

Now these companies are on display for everyone to see what happens to you, and what the very meaning of selling your soul to the Devil really means.

My own opinion is that they would have been just as well off to NOT take the bail outs last year and just filed for bankruptcy to begin with. It still happened anyway even after we tax payers tossed billions into the rabbit hole.

At least had they done that a year ago instead of the bailouts, they would have come out of BK just the same but we tax payers would not have been on the hook, the government would have nothing to say about who does what, which cars get approved for production, and what people get paid.

This is what happens when you make a deal with the Devil. It sucks, but that is how it is.
— SteedPub (View Profile)

Posted on 10/22/2009 4:34:39 PM | reply to this comment | Votes: 2

it appears that you believe the money handed to GM and Chrysler disappeared with the bankruptcy... this isn't true, they are still spending it...
— Joe_Limon (View Profile)

Posted on 10/22/2009 4:59:10 PM | | Votes: 3

Joe, unless they repay all their creditors, then yes, the money disappeared!
— Invisible (View Profile)

Posted on 10/22/2009 5:16:57 PM | | Votes: -1

They had something like $160billion in debt before bankruptcy the loans wouldn't have covered it. The creditors got screwed when bankruptcy set it. All on hand assets were transferred to the new GM upon bankruptcy, this includes land buildings and cash.
— Joe_Limon (View Profile)

Posted on 10/22/2009 5:31:34 PM | | Votes: 1

but don't feel bad for the creditors... they pay insurance for that...
— Joe_Limon (View Profile)

Posted on 10/22/2009 5:32:31 PM | | Votes: 2

You should check Bill Ford's comments in the NYT today. Although Ford didn't take bailouts, he thinks that had GM and Chrysler gone bankrupt in December, it would have been a catastrophe.
— LauderdaleDriver (View Profile)

Posted on 10/22/2009 10:59:12 PM | | Votes: 1

Ford may not have taken "bailout" money, but recently they gladly took the billions to help them retool factories.
— Invisible (View Profile)

Posted on 10/23/2009 8:45:07 AM | | Votes: 1

GM has agreed to follow the same compensation guidelines. Guess they saw the writing on the wall.
— thstone (View Profile)

Posted on 10/22/2009 4:43:16 PM | reply to this comment | Votes: 2

nobody should make over $500k to begin with.
— 1995e34 (View Profile)

Posted on 10/22/2009 5:47:19 PM | reply to this comment | Votes: -3

What if that is the same person that started organized and executed a $5billion program? What would be his incentive to do that over owning a small machine shop where one can easily make $500k.
— Joe_Limon (View Profile)

Posted on 10/22/2009 5:50:47 PM | | Votes: 3

i went too far with my comment.

i think the law of diminishing returns applies to monetary incentive just the same as it does to many other economic models.

in other words, i think profit motive can only create so much drive in an individual. i think the drive plateaus while the profits continue to increase, and end up not being circulated back into the economy. i guess i just know too many rich folks that spend their trust fund blowing coke all night while playing online poker (both activities are tax free).

you get to a point where every dollar more a person accumulates means less and less to them. its just the inverse of an extremely poor person to which a $20 bill is food for a week (maybe even longer).

i don't really have a problem with bill gates making what he makes, but he also gives a rather huge chunk to charity.

its the executives of insurance companies (and in some other industries) that are not developing new products that burns my ass, really. when an industry ceases to offer new products, it should not see massive growth in profits (without expanding markets).
— 1995e34 (View Profile)

Posted on 10/22/2009 8:49:18 PM | | Votes: 1

this is true about money meaning less. Ones happiness is not based on how much money you have, it's how much money you have in comparison to your colleagues. If you're the richest person you know with $100 you're probably as happy as the millionaire that doesn't venture out into the high end social clubs.
— Joe_Limon (View Profile)

Posted on 10/22/2009 9:30:27 PM | | Votes: 3

It's absolutely fair, if these were solvent companies that were making a profit on their own, they could pay their execs billion dollar bonuses for all I care. Reward them for their good work. These people did a horrible job essentially running their respective companies into the ground for a quick buck. They are lucky they have jobs at all. If YOU did a completely horrible job for your company would YOU still be working there?
— stone (View Profile)

Posted on 10/22/2009 8:20:12 PM | reply to this comment | Votes: 2

none of these businesses even matter anymore. go after goldman sachs!
— 1234xyz (View Profile)

Posted on 10/22/2009 8:41:48 PM | reply to this comment | Votes: 1

I think Obama is going to have to bring the country into a state of Martial Law to proteect us from ourselves.
— HyundaiSmoke (View Profile)

Posted on 10/23/2009 2:47:19 AM | reply to this comment | Votes: -4

"US", you don't even live in the USA you racist.
— Invisible (View Profile)

Posted on 10/23/2009 8:47:23 AM | | Votes: 2

They where overpaid anyway. Even with a lesser salary they will not know what its like to make cuts in thier budget to try to make the mortgage or to put food on the table.
— 1UAW (View Profile)

Posted on 10/23/2009 3:40:42 AM | reply to this comment | Votes: 4

I don't know why you are all excited about. They are still getting bonuses so whatever they are not getting as part of their salaries they will be getting them as bonuses. Put a cap on the bonus then we are getting somewhere.
— monster (View Profile)

Posted on 10/23/2009 9:14:20 AM | reply to this comment | Votes: 2

Invisble, when are you guys going to stop the false rumors about me?

I love the Fact that Hyundai's upmarket push combined with my comments has gotten under some of you people's skin :D!!!!!!!!!
— HyundaiSmoke (View Profile)

Posted on 10/23/2009 8:28:24 PM | reply to this comment | Votes: -1

your comments?? haven't they been racist and homophobic in the past?
— Caraficionado (View Profile)

Posted on 10/28/2009 1:19:59 PM | reply to this comment | Votes: 1

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Is This Fair? Fed Slashes Salaries Of Executives That Took Federal Funds

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