As General Motors (NYSE: GM) brass flail around Washington desperately seeking to avoid bankruptcy, the company is taking some draconian cost-cutting steps (subscription required) at its Detroit offices and plants. The company has stopped replacing the batteries in wall clocks, changed the brand of wipe-up towelettes it buys, and eliminated voice mail at most of its plants.The company is doing everything it can to conserve cash while it begs for a taxpayer-funded bailout but, unfortunately, CEO Richard Wagoner has been unwilling to take a step that would save the company cash and send a message of solidarity to the company's employees and the taxpayers who are being asked to foot the bill for a restructuring. Last week, Rep. Peter Roskam, R- Ill., asked Wagoner whether he would be willing to cut his salary down to $1 per year while the company navigate through the mess he has helped to navigate it into. He declined.
Here's what so ridiculous about this: In 2007, Mr. Wagoner was paid $14.4 million, on top of another $10.2 million in 2006. In retrospect, he deserved literally none of that. Not a nickel. So the fact is that Congress should be asking him to contribute a good chunk of that to the bailout effort, not merely asking him to take a larger salary cut for 2008 or 2009. But he won't even do that.
Before Congress spends another second even discussing a bailout, they should toss Mr. Wagoner out on the street.
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Reader Comments (Page 1 of 1)
11-24-2008 @ 1:56PM
Jeff said...
It's a loan, call it correctly!! or don't call it at all.
In Automotive you have 3 million people affected!!! wall street was how many??? come on
11-24-2008 @ 8:04PM
Dan said...
Is the corporate jet still available for trips back and forth to DC?
11-24-2008 @ 11:45PM
Ralph said...
Have the employees vote out the union or shut down, and take a vacation, and at the same time sue the government for protecting the union and alllowing them to take over a free interprize under government law Communist actions
11-24-2008 @ 11:50PM
ralph said...
sue the government for protecting the unions to take over privte companies. Union was created for stopping the use of jacks of all trades during the depression not for communist actions of the government to take over privte interprize with personel benefit
11-25-2008 @ 3:01PM
Pat said...
COME ON....
Reducing salary to $ 1 per year has no meaning for these guys ! They will make it up with the Rubber Stamp Boards thru other means.
Here is how you can make sure they work hard and intelligently:
Top 20 % Execs invest 50 % of their Net Worth in comapany stock TODAY. Then they will know how the retirees, widows and the One Million share owners feel !
Salary goes down to the avearage of all white collar employees and they get EXACTLY the samr benifits (no freebies).
They cannot get to current compensation levels till they pay off the loans.
Oh no, the "Best Team " we have will quit ! Fine, rats who abandon sinking ship get no pensions or parachutes....after all they are the ones who got us here .
12-13-2008 @ 12:36AM
kel said...
The loans made will be required to be repaid with interest.
My question is will the interest rate be in the area of 18% to 23%, as are my credit card rates.