GM and Ford CEOs made way more than you did last year
Filed under: Career, Wealth, Bankruptcy
Now that General Motors and Ford Motor Co. are staring into the abyss of free market capitalism (stay competitive or die), the two remaining publicly -owned members of the vaunted Big Three automakers are sucking up to the Fed for a piece of the $700 billion financial industry bailout. Congress has already slipped the industry a bone in the form of $25 billion worth of low-cost loans. But the auto industry is in its death spiral, and needs more. More!
I can't help but wonder, with all this hemorrhaging of money, why the men who helped make these iconic American companies the dinosaurs they are today are not taking a pay cut themselves. I mean, if you're going to exact a pound of flesh from your working rank and file, why not take a whack at yourself?But that's not the American way. GM CEO Richard Wagoner took home a total of $14.5 million in 2007, a 41% increase over 2006. Meanwhile, GM posted a third quarter net loss of $2.5 billion (that's Billion. With a B.) My colleague Zac Bissonnette wonders what the man would have to do to get fired...join Al Qadea?
GM announced today in the Wall Street Journal that it would be making steep cuts in its white-collar ranks, too. But still no word on any sacrifices Mr. Wagoner might make.
Meanwhile, over at Ford, CEO Allan Mulally took home $22 million in salary and special prizes in 2007, the same year his company lost $2.7 billion. Ford reported a $129 million third quarter loss. Couldn't he step up to the plate and personally save his company $10 million a year?
Guess not.
It's this kind of personal sacrifice that helped bring the auto industry to where it is today. (And yes, I'm implicating the unions here as well.) Finger pointing aside, it's just not looking too good for Detroit.
Adding insult to injury, you can bet none of the big men at the top will be left worrying about their retirement health care plans, like the thousands of retired GM workers now in jeopardy of losing their's when GM goes belly up.
I'm not even going to address the irony of government bailouts for the financial and auto industries while basic universal health care for citizens is immediately shot down as too expensive and "socialist," by right-wingers.
Maybe a new, greener, more nimble personal transportation industry will arise out of the ashes.
Reader Comments (Page 1 of 1)
11-10-2008 @ 4:20PM
playpffmk said...
The automakers,should lower prices,and stop wasting money on commericals. I'am not going to buy a car or truck,thats 3/4 the price of a house.
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11-10-2008 @ 4:26PM
wayne said...
Here we go again BAILOUT Ford & GM car companyS, while their CEOS take $14 million & $22 million are we complete Idiots WHY DOES ANYONE DESERVE TO MAKE THIS KIND OF MONEY WHILE THIER COMPANYS LOSE MONEY . I DONT GET IT . wHEN WILL THIS BULLSHIT END PRINT THAT AOL
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11-10-2008 @ 5:11PM
Larry Clockwant said...
They should merge both companies to bring down cost of operations in order to generate profits. The merger of Exxon and Mobil brought cost down and the cost of operations to a very minimum. Despite the large profits both companies made last quarter it might have been a loss if the government had not allowed this merger to take place.
http://www.youtube.com/watch?v=xKlMl4II3_0
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11-11-2008 @ 9:00AM
Hager said...
Withhold any bailout moneys from Ford and GM until the CEO and other high-paid officials of these corporations slash their
supposedly deserved(???) earnings and golden parachutes.
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11-10-2008 @ 6:07PM
Jane said...
Excellent article. This point seems to be overlooked as the US Auto Companies are asking for taxpayer funded assistance.
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11-10-2008 @ 7:59PM
Mvicster said...
We pay billions to rebuild other Countries but hedge when it comes to ourselves. Something does not feel right here. Wallstreet, Banks, Congress, Senate, Governors, ect. paid to best represent us, we have all been victims and we continue to pay and vote for those in office elected to protect us and represent our best interests. We cant help two of the Largest Companies in the world?
Wayne I bet you would not give it back if you made 14 to 22 million......Vic
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11-10-2008 @ 7:04PM
J.Jake said...
In my humble opinion one of the problems in our country is the unions. Unions have out lived their time. Every time you turn around their going on strike for something - higher wages, more benefits, more time off - they are and have been one of the highest paid industries in the country(auto). All this drives up prices - just look back when the Japanese cars first come in our country, they were way under the price of U S cars and people started buying them instead of US build cars. Just remember when almost everything you bought was "Made In
America" The Good Ole USA. Unions, Unions, Unions,- more pay, more of everything - What happened, Companies took their business overseas where they could get cheaper labor, less benefits and could make a profit on their goods.
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11-11-2008 @ 12:00PM
Lynn said...
WHERE is the Rationale here ? They are not able to sucessfully manage their companies and cause the lay-offs of tens of thousands of employees whose lives are then also ruined, but they get REWARDED for that ?
I can understand bonuses for good-great peformance but bonuses for what ? There was a story on TV this AM about a high school senior who built an electric car in 150 hours at a cost of 18,000 dollars and yet with ALL of the engineers and expertise our American car companies have - we can't even put out cars that average out at over 30 miles / gallon ? Toyota can and thats why they have sold the heck out of the American market place.
It's not about disloyalty. Americans want the best products and American Automakers just can't deliver.
Every time I read about these guys I remember the the phrase in the Bible about the camel and they eye of the needle. I hope an especially hot spot in Eternity is being held for them.
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11-21-2008 @ 8:46AM
Susan said...
If we loose our industrial base and force more people to live on the DOLE, who will pay the taxes to keep the DOLIES happy on payday? We can't all live on tax money. We need these manufacturing jobs. Bring more jobs back to the USA. so Americans can work at a decent wage and support themselves.
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2-02-2009 @ 6:13PM
Eternal said...
Greed is the american way and most companies dont care about their workers. Basically every man & woman for themselves thats why the U.S. is so messed up people dont give a crap for one another but yet some of us are so quick to help the starving children overseas and all that other stuff instead of addressing issues at home. Just something i have noticed im sure some of you may have noticed as well.
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