GM exec: Salary Limits Hurt Firm's Recovery
Jeanwah
Posts: 6,363
Shall we have a pity party for the executives at GM?
http://news.yahoo.com/s/ap/20101210/ap_ ... _gm_future
By KEN THOMAS, Associated Press Ken Thomas, Associated Press – Fri Dec 10, 2:25 pm ET
WASHINGTON – The top executive at General Motors said Friday that the automaker's attempt to rebound from its bankruptcy is being hindered by salary limits the government has clamped on executives at companies that accepted federal bailouts.
GM CEO Dan Akerson said in a speech to the Economic Club of Washington, D.C., that the company faces many challenges, including the retention of top talent in its executive ranks. He suggested relaxing the pay limits, and said he was meeting later in the day with federal officials who oversee executive compensation for companies that received bailouts.
"We have to be competitive. We have to be able to attract and retain great people," Akerson said, adding, "We've been able to retain them but we're starting to lose them and I think that's an issue for our owners to recognize that in their best interest, there should be some relaxing."
Akerson said he recently informed executives there would be no salary increases in 2011 for about 26,000 white-collar workers. In a message to employees obtained by The Associated Press, the company said there would not be "any broad-based salaried merit plans in the U.S. or Canada." GM said the decision was based on "controlling structural costs in all aspects of our business."
Akerson is receiving a government-approved $9 million in annual compensation, including stock and salary.
Akerson declined to comment when asked by reporters what he hoped to accomplish in the meeting with Pat Geoghegan, the government's top official on executive pay.
Treasury spokesman Mark Paustenbach said Geoghegan "routinely meets with executives on these matters."
The government gave General Motors $49.5 billion to bail out the automaker in 2008 and 2009. Treasury earned $13.5 billion from GM's initial public offering in November. U.S. taxpayers still own 33 percent of the company.
In a criticism of a rival automaker unusual for corporate leaders, Akerson took a shot at Toyota's popular hybrid car, the Prius. GM is pinning some of its plans for a comeback on its new plug-in electric car, the Chevrolet Volt, that would compete with the Prius.
"We commonly refer to the geek-mobile as the Prius. And I wouldn't be caught dead in a Prius," he said. Speaking of the Volt, he added, "This actually looks good."
Akerson also said GM was well-positioned to take advantage of growth markets in China and India.
He said GM learned a lesson in humility from its bankruptcy but it was well-positioned to return to sustained profitability while reducing its debt and large pension obligations.
"We survived a near-death experience and we deeply appreciate the support we got from the American people," Akerson said.
http://news.yahoo.com/s/ap/20101210/ap_ ... _gm_future
By KEN THOMAS, Associated Press Ken Thomas, Associated Press – Fri Dec 10, 2:25 pm ET
WASHINGTON – The top executive at General Motors said Friday that the automaker's attempt to rebound from its bankruptcy is being hindered by salary limits the government has clamped on executives at companies that accepted federal bailouts.
GM CEO Dan Akerson said in a speech to the Economic Club of Washington, D.C., that the company faces many challenges, including the retention of top talent in its executive ranks. He suggested relaxing the pay limits, and said he was meeting later in the day with federal officials who oversee executive compensation for companies that received bailouts.
"We have to be competitive. We have to be able to attract and retain great people," Akerson said, adding, "We've been able to retain them but we're starting to lose them and I think that's an issue for our owners to recognize that in their best interest, there should be some relaxing."
Akerson said he recently informed executives there would be no salary increases in 2011 for about 26,000 white-collar workers. In a message to employees obtained by The Associated Press, the company said there would not be "any broad-based salaried merit plans in the U.S. or Canada." GM said the decision was based on "controlling structural costs in all aspects of our business."
Akerson is receiving a government-approved $9 million in annual compensation, including stock and salary.
Akerson declined to comment when asked by reporters what he hoped to accomplish in the meeting with Pat Geoghegan, the government's top official on executive pay.
Treasury spokesman Mark Paustenbach said Geoghegan "routinely meets with executives on these matters."
The government gave General Motors $49.5 billion to bail out the automaker in 2008 and 2009. Treasury earned $13.5 billion from GM's initial public offering in November. U.S. taxpayers still own 33 percent of the company.
In a criticism of a rival automaker unusual for corporate leaders, Akerson took a shot at Toyota's popular hybrid car, the Prius. GM is pinning some of its plans for a comeback on its new plug-in electric car, the Chevrolet Volt, that would compete with the Prius.
"We commonly refer to the geek-mobile as the Prius. And I wouldn't be caught dead in a Prius," he said. Speaking of the Volt, he added, "This actually looks good."
Akerson also said GM was well-positioned to take advantage of growth markets in China and India.
He said GM learned a lesson in humility from its bankruptcy but it was well-positioned to return to sustained profitability while reducing its debt and large pension obligations.
"We survived a near-death experience and we deeply appreciate the support we got from the American people," Akerson said.
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Comments
"With our thoughts we make the world"
So would you do away with the stock market altogether?
They got like 50 billion from the US
10 billion from Canada
How much did wall street get? A trillion?
I was skeptical at first, but they are seemingly living up to their obligations.
"Life Is What Happens To You When Your Busy Making Other Plans" John Lennon
the people already own GM (still waiting on my paycheck). should have used that company to build something useful for the people, high speed transit system maybe? they already had the skilled labor and manufacturing ability required to do it.
apparently spending tax dollars on the majority isn't good for the economy. but million dollar bonuses to already wealthy corporate execs are. fuck GM. and their CEO's. the banking industry already got their bailouts, and so did GM. too bad if its not enough.
The stimulus and bailouts were overtly foolish. The government should've distributed all of the money evenly to each American taxpayer under the stipulation they use it towards debt repayment, or otherwise spend it.
THAT would've stimulated the economy.
why didn't they just let it fail, what is another i dunno, hundred thousand unemployed workers? :shock:
seriously. they had to bail out gm. if they hadn't then the conservatives would be complaining about having to pay for all of the autoworkers on unemployment.
oh wait......
gm has paid back most of that money, with interest, so the american people actually MADE money in that deal...too bad the executives got their bonuses too..
what would have been the best solution in your eyes?
"Well, you tell him that I don't talk to suckas."
Pay back all of the fucking money we gave you to save your fucking asses a couple of years ago... and you can have your goddamn company back. Then, you can go back to the business of giving yourselves 2 million dollar pats on the backs of each other as your company loses money because of your selfish lack of foresight.
...
Quit whining... you fucking multi-millionare pansy fucks.
Hail, Hail!!!