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NINETY EIGHT REGENCY

Rep. Frank: GM's Whitacre overpaid

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Rep. Frank: GM's Whitacre overpaid

David Shepardson / Detroit News Washington Bureau

Washington -- The influential chairman of the House Financial Services Committee said today that General Motors Co.'s new chief executive Edward Whitacre Jr. is being overpaid.

Rep. Barney Frank, D-Mass., said Whitacre's $9 million pay package, which includes $1.7 million in cash, is "excessive." The remainder of the pay is in stock that Whitacre can't sell

"I don't think Mr. Whitacre was going to go do something else" if he got paid less, Frank told reporters this afternoon after a hearing. "He's having a good time there. I think they way overcompensate themselves."

Whitacre also gets stock awards currently valued at $7.3 million that can't be cashed in until the company repays its government loans. But the stock could be worth more, depending on GM's market performance after its initial public offering.

GM spokeswoman Renee Rashid-Merem said Whitacre's pay was fair. "He's a veteran CEO and chairman who has a proven record of turning companies around," she said Thursday. "We believed he's being compensated appropriately."

Kenneth Feinberg, the Treasury department's special master for executive compensation for the five firms that received large government bailouts that haven't been repaid, told The Detroit News today why he approved Whitacre's pay package.

Prior to today, the Treasury hadn't confirmed Feinberg's approval of the package.

"We thought the package of total compensation was appropriate," Feinberg said.

He noted that much of the stock that Whitacre stands to receive is only redeemable if GM repays the taxpayers in full. But it is still not clear what that means.

"We want General Motors to repay the taxpayer," Feinberg said.

GM plans to repay its outstanding $5.7 billion in government loans by June 30, but the government will still own 60.8 percent of the company that it swapped for about $42 billion in government loans. The Treasury Department hasn't said precisely how GM will escape pay oversight.

Feinberg approved $1.7 million in cash for Whitacre -- nearly twice the $950,000 cash salary he approved for then-GM CEO Fritz Henderson last fall, which was a 25 percent cut in pay.

"We looked at Mr. Whitacre's background, the competition, the data, the need for leadership at General Motors. We took a lot of factors into account," Feinberg said.

Feinberg has oversight over the top 25 highest paid individuals at five companies: GM, Chrysler Group LLC, GMAC Inc., Chrysler Financial LLC and AIG Inc. Other companies like Bank of America no longer are covered because they have repaid their government loans.

From The Detroit News: http://detnews.com/article/20100225/AUTO01/2250475/1148/auto01/Rep.-Frank--GM-s-Whitacre-overpaid#ixzz0gameWF6z

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Barney Frank is an idiot. Unfortunately, he is an idiot with clout.

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Thats OK Barney was over paid the the Fannie Mae deal too.

Barney needs to be removed from office the next time he is up for election!

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Why is it any of Barney Frank's business? The last time I checked, he is horribly overpaid himself.

Edited by whiteknight
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So... if you enjoy what you're doing as a career, you should be paid less?

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That's the punishment mentality of those in government.

Edited by Camino LS6
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So... if you enjoy what you're doing as a career, you should be paid less?

so even if you're horrible, you should keep your job? politics is the only place that happens.

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so even if you're horrible, you should keep your job? politics is the only place that happens.

The people of Mass. apparently like him enough to re-hire him every two years.

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I am generally not a fan of Rep. Frank's politics (except the gay rights stuff of course), but I will admit the man is entertaining to watch from time to time.

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(except the gay rights stuff of course)

no offense, but i hate that phrase, only because of what it implies, not for how typical it's used.

franks voice alone can be hilarious to listen to, if you can stand listening to what he says.

edit: the rep mark- was it offensive? should i explain or edit it out?

Edited by loki
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The man is the worst sort of politician irrespective of his party and his personal life.

Corrupt and holier than thou.

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no offense, but i hate that phrase, only because of what it implies, not for how typical it's used.

franks voice alone can be hilarious to listen to, if you can stand listening to what he says.

edit: the rep mark- was it offensive? should i explain or edit it out?

you should explain.

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you should explain.

ok. gay rights implies that gays have rights that straights don't have. if we get back to rights being individual rights, it won't matter what skin color,orientation, religion... when rights are individual, which they are, discrimination by the law is illegal and can only be temporarily taken away by due process. a rule of law ideal.

am going to read this article, prolly post it here in the politics but there is a paragraph that says;

At root, the libertarian position is very simple and must be communicated in this way. It holds that people should not be allowed to commit crimes against one another. All of the talk about free markets versus market intervention, capitalism versus socialism, regulation versus deregulation, and so on, is just a disguised way of presenting the basic dichotomy between a society of criminals and a society of law. This is the essence of the battle.
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ok. gay rights implies that gays have rights that straights don't have.

You've been way off base before, but this one goes in the record books. If you want to continue to debate this one, make a thread in the politics forum.

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ok. gay rights implies that gays have rights that straights don't have. if we get back to rights being individual rights, it won't matter what skin color,orientation, religion... when rights are individual, which they are, discrimination by the law is illegal and can only be temporarily taken away by due process. a rule of law ideal.

am going to read this article, prolly post it here in the politics but there is a paragraph that says;

Dude, what?

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The people of Mass. apparently like him enough to re-hire him every two years.

It's not the people of MA, it's a small district within MA.

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ok. gay rights implies that gays have rights that straights don't have.

Before I simply questioned your grasp of being able to follow and/or comprehend linear logic. Now, I question your grasp of how words and phrases are formed in the English language.

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