GM's CEO Forced to Resign

[hortysir]

As a condition of recieving government bail-out money, the CEO of General motors was forced to resign. However, he does stand to recive a $20 million severence package.
is this okay?

[squirt]

not when they're asking for taxpayer's money to fix it lol he should walk away with what he's wearing

[Flynn]

HS




It's not as simple as your one question suggests.

Wagoner has a contract that stipulates the terms of his severance conditions.

If you or I had our income prematurely terminated we would expect to be compensated according to our employment contract.


quote USA Today


Wagoner had a salary of $2.1 million last year.

Wagoner, 54, is not eligible for the $20 million until he's 60, but Crystal advises him to take a reduced amount now if he can. If GM goes into bankruptcy protection, only $833,000 of the pension is protected, Crystal says. Wagoner risks losing the rest in a bankruptcy settlement.


I'm surprised his salary is as low as $2.1 million.

CEO's of other comparible companies are on a much larger salary base than $2 million.

Personally, I believe ........

If any professional person was worth 2 million a year it would have to be a doctor at the top of the list.

Back to the Wagoner

He is no different to any other worker who has an employment contract.

The shareholders were stupid enough to permit Board Members to be paid that much and their salary packages have become " The Norm ".

CEO's earn more in their bonus plans than from their base salary it's all in the contract, read the fine print !

It doesn't matter whether you or I think it is right or wrong, it is legal.

[sybarite]

Unfortunately Flynn's right. It burns me that the tax payer is paying for his bonus, but contractually it's legal. That's the price we pay for bailing out instead of these companies going bankrupt.

[SpiderWeb]

but his contract was with GM .... it is the government that is forcing it ... there has to be a loophole somewhere ....

I seriously believe that if a CEO isn't producing for any company there should be no reward whether it is in the contract or not ..... .... I mean what are these companies thinking .....

[hortysir]

Now I will voice my opinion on it....
Yes, Flynn, you are exactly right. It is a legally binding contract between employer and employee.
The government has absolutely NO AUTHORITY!!!
The same goes for the AIG bonuses.
Spidey, if a CEO isn't performing to standards it is the Board of Directors and Shareholders jobs to kick him out.
NOT GOVERNMENT.
Please don't buy into Obama's mob mentality....

[hortysir]

Syabrite, you senators and congressional reps voted for these bonuses.
You need to be in contact with these people almost daily. Let them know that they need to stop the spending. To stop financing failure on the backs of our children and grandchildren. Let them know they work for US...not vice-versa.
E-mail me, SY, at hortysir@gmail.com and I will forward to some wonderful resources

[sybarite]

Originally Posted by hortysir

Syabrite, you senators and congressional reps voted for these bonuses.
You need to be in contact with these people almost daily. Let them know that they need to stop the spending. To stop financing failure on the backs of our children and grandchildren. Let them know they work for US...not vice-versa.
E-mail me, SY, at hortysir@gmail.com and I will forward to some wonderful resources

I am in constant contact with my politicians on all matters, but fire away. The more resources I can get, the better.

[MarlboroCowboy76]

CNN reported what his severance package was 'supposed' to be - that doesn't mean that after the AIG scandal that he'll get it.

[SpiderWeb]

[quote=hortysir;2797845]Spidey, if a CEO isn't performing to standards it is the Board of Directors and Shareholders jobs to kick him out.
NOT GOVERNMENT.
quote]

I realize this ... but apparently the boards and shareholders are idiots in this case because the car companies whined and still didn't improve with the first hand outs ...

and I was actually speaking, in a real world .... lol