Former GM CEO settles for a less ridiculous retirement package originally appeared on BloggingStocks on Wed, 15 Jul 2009 09:30:00 EST. Please see our terms for use of feeds.

How much of an exit package should Richard Wagoner get? originally appeared on BloggingStocks on Fri, 10 Jul 2009 16:20:00 EST. Please see our terms for use of feeds.

General Motors (NYSE: GM) disclosed yesterday that it had borrowed another $4 billion from the Treasury Department, raising its total indebtedness to us to $19.4 billion.

The New York Times reports that "G.M. originally said that it would need an additional $2.6 billion from the government to operate through June 1, but added $1.4 billion to that amount."

Whoops! GM underestimated its cash needs by an astounding 53.8%!

Continue reading GM lied about how much cash it needed: Should we give them more?

GM lied about how much cash it needed: Should we give them more? originally appeared on BloggingStocks on Sat, 23 May 2009 12:40:00 EST. Please see our terms for use of feeds.

"We knew someone was going to have to take the proverbial `bullet,' and it would have made it a lot easier to accept that had the CEOs of the banks also been required to give up their jobs," said Jim Graham, president of a union local in Lordstown, Ohio, where GM produces the Cobalt and Pontiac G5 fuel-efficient cars.

The comparison isn't entirely unreasonable: Ken Lewis and Vikram Pandit should have been dumped out on the street too, and it's a testimony to both appallingly bad corporate governance and poor oversight by the federal government that either of them currently has a job doing anything other than dogwalking.

But why defend Wagoner? By defending Wagoner's "leadership", people like Mr. Graham are essentially admitting that GM was essentially destined to fail because of overseas competition and its uncompetitive labor costs. If they want to deflect blame from themselves, they should be embracing the Richard Wagoner as The Man Who Ruined General Motors script. Otherwise, there's nowhere to point the finger but inward.

Unions leap to Wagoner's defense: Why? originally appeared on BloggingStocks on Tue, 31 Mar 2009 16:35:00 EST. Please see our terms for use of feeds.

Continue reading Ruining GM pays more than you might think: Wagoner's $20 million pension

Ruining GM pays more than you might think: Wagoner's $20 million pension originally appeared on BloggingStocks on Tue, 31 Mar 2009 08:40:00 EST. Please see our terms for use of feeds.

Continue reading GM CEO can't make up his mind about bankruptcy

GM CEO can't make up his mind about bankruptcy originally appeared on BloggingStocks on Wed, 18 Mar 2009 08:00:00 EST. Please see our terms for use of feeds.

The ink is barely dry on the $13.4 billion in "loans" provided by the Bush administration at the end of 2008, but General Motors (NYSE: GM) is already talking about needing more. CEO Richard Wagoner says the company may look to secure additional government cheese in March -- earlier reports had suggested that GM believed the $13.4 billion would be enough to survive through 2009.

How does GM plan to demonstrate viability? It will need to secure broader concessions from the United Auto Workers union and, hilariously, try to convince bond holders to swap their debt for equity in one of the greater cash-burning machines in history. Good luck with that one!

Wagoner also said that GM is still looking to find a buyer for Saab. The company has denied problems in generating interest in the brand among potential buyers -- I'll believe someone is interested in buying Saab when there's a done deal. Similarly, GM has failed to generate any serious interest in Hummer, despite trying really, really hard to find a buyer.

GM's management has been extremely optimistic in terms of its "forward-looking statements," but so far it's all been bluster. Government officials should keep that in mind when GM brass shows up in March to demonstrate a plan for viability.

That didn't take long: GM CEO says he might need more money originally appeared on BloggingStocks on Sun, 11 Jan 2009 17:40:00 EST. Please see our terms for use of feeds.

GM CEO says company can restructure without cutting retiree benefits originally appeared on BloggingStocks on Fri, 09 Jan 2009 10:15:00 EST. Please see our terms for use of feeds.

As though we needed another reason to be disgusted with corporate governance in the United States, here's a gem from The Wall Street Journal (subscription required): "So far this year, 46 outside directors who are CEOs or chief financial officers left the boards of 42 companies in three struggling industries -- financial services, retail and residential construction -- concludes an analysis for The Wall Street Journal by Corporate Library in Portland, Maine."

Directors at companies like Ford (NYSE: F), General Motors (NYSE: GM), Sprint Nextel (NYSE: S), and American International Group (NYSE: AIG) have been resigning, citing the huge amount of time required to be a director at a company faces extinction.

Oh where to begin. First of all, isn't it a little bit messed up to go along collecting a salary in the $150,000 per year range (which is what GM directors are paid) to go to a few meetings a year when times are good, and then head for the hills when the going gets tough? Isn't that like working for ten years as a security guard at a posh country club without incident and then calling in your resignation at the first sight of a burglar?

Continue reading Directors leave when companies need them most

Directors leave when companies need them most originally appeared on BloggingStocks on Sun, 23 Nov 2008 17:40:00 EST. Please see our terms for use of feeds.

The Wall Street Journal reports (subscription required) that General Motors (NYSE: GM) was recently in discussions to acquire Chrysler from Cerberus Capital Management, the private equity firm in the unpleasant position of owning that train wreck.

Once you learn the details, it's not quite as dumb as it sounds at first. According to the Journal, "Cerberus proposed a swap in which GM would acquire Chrysler's automotive operations, and in turn give Cerberus its remaining 49% stake in GMAC."

Given what a mess GMAC is, the proposal provides an idea of what Cerberus thinks of Chrysler's long-term prospects. It's a little bit like a few college students trying to trade 98 Degrees CDs for Dawson's Creek posters.

It's pretty much moot because the events of the past week have made a deal of this size impossible to put together, at least for now. But it's still interesting to think about. Given what a dump GM is, it's hard to imagine that an acquisition of this size and complexity would help matters. CEO Richard Wagoner (seen at right mulling the merger) already has his hands full.

GM insists that bankruptcy is not on the table. But so does every company -- until it files.

GM mulled Chrysler acquisition: Huh? originally appeared on BloggingStocks on Sat, 11 Oct 2008 12:10:00 EST. Please see our terms for use of feeds.

General Motors (NYSE: GM) and Ford (NYSE: F) want you to pick up their tab for their decades of excess and managerial incompetence.

The Associated Press reports that the Detroit automakers are likely to ask Congress for $50 billion in low-interest loans to fund modernization efforts, and help them build more fuel-efficient vehicles.

What a load of crap. In 2007, Ford paid cash-burning CEO Alan Mulally $21 million, and GM's Richard Wagoner got a 41% raise to over $14 million for the same year. In effect, our tax dollars will be subsidizing this pay for pulse orgy of bad governance. GM also paid out more than half a billion in dividends in 2007 -- if the company needs billions to invest in modernization, why didn't it cut the dividend a long time ago?

It appears that the auto industry has been counting on a bailout all along, and why not? It looks like they'll be getting it.

Automakers want a loan from Congress? Hah! originally appeared on BloggingStocks on Sun, 24 Aug 2008 07:00:00 EST. Please see our terms for use of feeds.

General Motors Corp. (NYSE: GM) CEO Richard Wagoner earned $10.2 million in 2006, and will be receiving a raise in his $1.28 million salary, which was cut in half in February of 2006. While the $370,000 salary raise he's receiving is a pittance in the grand scheme of things for a company like GM, it does have important symbolic value.

This coming July, GM will begin negotiations for a new contract with the United Auto Workers Union. Here's the problem: Given the sacrifices that the workers have made over the past few years, how can anyone argue that they shouldn't receive a portion of what they gave up, just as Wagoner received 50% of his salary cut back for this year?

This looks remarkable short-sighted for Wagoner and the Board. Is the $370,000 raise (he earned $10.2 million including options and restricted stock in 2006) really worth the headache of hearing about during every negotiating session?

GM CEO takes home 10.2 million in 2006 originally appeared on BloggingStocks on Sun, 29 Apr 2007 17:40:00 EST. Please see our terms for use of feeds.