NINETY EIGHT REGENCY

GM CEO takes 25 pct pay cut to support turnaround

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Reuters

GM CEO takes 25 pct pay cut to support turnaround

Friday April 27, 3:24 pm ET

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DETROIT (Reuters) - General Motors Corp (NYSE:GM - News) Chief Executive Rick Wagoner has voluntarily cut a quarter of his base salary to support the automaker's turnaround plans, GM said in a filing on Friday.

As of March 1, 2007, Wagoner's base salary was $1.65 million, down from $2.2 million in January 2006, GM said in a filing with the Securities and Exchange Commission.

GM's Chief Financial Officer Fritz Henderson and product chief Bob Lutz also took pay cuts of 15 percent each, bringing their base salaries to $1.32 million each.

The world's largest automaker, which has lost more than $12 billion in the last two years, is in the middle of a sweeping restructuring that includes slashing more than 34,000 jobs and closing 12 plants.

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that still seems like a huge salary, maybe the unions and others high up will do something similar

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Reuters

GM CEO takes 25 pct pay cut to support turnaround

Friday April 27, 3:24 pm ET

Posted Image

Manny, Moe, and Jack - The Pepboys! :smilewide:

DETROIT (Reuters) - General Motors Corp (NYSE:GM - News) Chief Executive Rick Wagoner has voluntarily cut a quarter of his base salary to support the automaker's turnaround plans, GM said in a filing on Friday.

As of March 1, 2007, Wagoner's base salary was $1.65 million, down from $2.2 million in January 2006, GM said in a filing with the Securities and Exchange Commission.

GM's Chief Financial Officer Fritz Henderson and product chief Bob Lutz also took pay cuts of 15 percent each, bringing their base salaries to $1.32 million each.

The world's largest automaker, which has lost more than $12 billion in the last two years, is in the middle of a sweeping restructuring that includes slashing more than 34,000 jobs and closing 12 plants.

Fixed:

I can hear Wagoner, Lutz and Henderson now, "God, I guess I will try to make ends meet with 1.something million" Spare me! :spin:

Edited by Pontiac Custom-S
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It's a nominal salary based on the revenues and employee base. Good for him for doing it. It signals he's serious about making the pain spread around.

Remember these guys are just like everyone else in that they have loans to pay and financial commitments that don't just go away because business isn't good. Granted it's on a larger scale than most of us but you get the idea.

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Their salaries are pretty low actually.

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Their salaries are pretty low actually.

yes. thing is, this mostly a strategic move pre-union negotitations. a good move. Kevin Garnett makes like 18 million for not being able to carry a basketball team but Maximum Bob and the rick make crap in comparison.

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how about a new CEO

Really not needed, as currently, things are actually going quite well and in order. And now, he and others are even agreeably making less than a lot of others in the biz.

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It is a good public relations move and signal to the union that hee will take a loss as he will expect them to.

I never under stood why people trash CEO's for making money when they dont bat an eye to pay big ticket prices to see a buch of football , basketball and baseball player play a game for millions.

When was the last time an athelete ever hired you and gave you a job?

My buddy did sell Lebron James $300 worth of Pizza once but I won't count that.

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Look this is a lot of spin. The real numbers are here

http://www.forbes.com/topstories/home/feed.../ap3664086.html

I understand this is also spin. MOst of the the 9.6 mil is based on stock options, which are based on stock prices, which depend on the performance of the management team.

My whole point is if you turm GM around into a company that makes cars that stir the imagination you can keep the money. As far as I can see - money well spent.

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It is a good public relations move and signal to the union that hee will take a loss as he will expect them to.

I never under stood why people trash CEO's for making money when they dont bat an eye to pay big ticket prices to see a buch of football , basketball and baseball player play a game for millions.

When was the last time an athelete ever hired you and gave you a job?

My buddy did sell Lebron James $300 worth of Pizza once but I won't count that.

Exactly. When we pay pro sports figures so much money for physical abilities they were born with, it's tough to bitch about Rick making a CEO's salary. He took a lot of heat when they were burning through cash.

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how about a new CEO

Brilliant idea. Maybe Mr. Toyoda wants the job? Not.

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how about a new CEO

Yeah... Toyota wishes.

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Point taken however I'd be interested to know what people who are complaining Rick is still making what he is, think he SHOULD be compensated. Enough of the complaining about it. What do YOU think he should be paid?

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99% of the people who bitch about what CEO's get paid would fold under the demands and pressure of the job within a week or two if they were thrust into those jobs. things is, CEO's are still overcompensated, IMHO.

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Point taken however I'd be interested to know what people who are complaining Rick is still making what he is, think he SHOULD be compensated. Enough of the complaining about it. What do YOU think he should be paid?

Zero?

I'm not sure why GM should reward a lifer. He has never worked elsewhere...so he has overseen not just the recent troubles, but also has had his entire tenure at GM, whether he was a junior accountant or CEO, follow a downward trajectory.

Is there noone else on the planet more qualified and better suited?

A company with the resources of GM should be able to find a couple of people that fit the bill!

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Zero?

I'm not sure why GM should reward a lifer. He has never worked elsewhere...so he has overseen not just the recent troubles, but also has had his entire tenure at GM, whether he was a junior accountant or CEO, follow a downward trajectory.

Is there noone else on the planet more qualified and better suited?

A company with the resources of GM should be able to find a couple of people that fit the bill!

Blame the "yes men" board of directors and the idiotic shareholders if you want to blame someone for that.

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Point taken however I'd be interested to know what people who are complaining Rick is still making what he is, think he SHOULD be compensated. Enough of the complaining about it. What do YOU think he should be paid?

Actually, I didn't post it to make a point... I just love this Dilbert comic. 8)

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Compared to the world job market most Americans could be termed over paid.

The fact is few people are suited to run a comapny. Most as stated would fold in a week or the company soon after. Your the one that union hates the share holders hate and having thousands question every move you make. If you get it right everyone says it is about time and if you get it wrong it is all your fault.

This also is not a 8 hour job 5 days a week. Your working 24/7 365 days a week. If your playing golf most times it is not your buddy but a busniess meeting. Your not just sinking a putt but your also talking a deal. Your not just sitting on the beach on vacation your fielding calls and reading e mails on your lap top. You can't even take a crap with out thinking what your going to be doing next. It may look all like fun and games but you really have little personel life.

I do like to see more performance based pay like the stock options as they make money if the company does and if they don't they make less or nothing.

Contrary to what many feel, companies are in to make money not employee people. They should not abuse the employees but they really do not owe them anything but a check for hours worked. It is a cold statment but it is a cold world.

If anyone thinks they are under paid and under loved go to another company it is a free system but most all work the same way.

I don't think there are 20 people in the world that could run GM or do much bettter than Rick right now and most would ask a higher price yet. He is not perfect but I don't see any one else or any of us walking on water.

As long as the company is imporving 10 million is a cheap price vs shutting down or selling out.

I have met or know several of CEO's of BFG, Firestone and Goodyear over the years. All made more than 10 million and all were consumed everytime I met them with work. The stress was working hard on them and one of them has even had a break down at one point in his life. The day they retire is one of the happiest for most. They love the challange but it takes it toll on the personel side.

They not only got little credit for anything good but they did get all of the blaime and hate. They get personel threats and even have threats against there innocent familys. The are likeable guys for the most part but they are the ones that have to make some unpopular calls and take the blaime for it.

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