Big Three Carmaker CEO's Pledge To Take $1 Salary In Return For Bailout Bucks
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This seems like a good idea until they get "exposed" using a car service or getting meals for free in the caf or whatever. Then it's bad press.
A $1 salary doth not a Steve Jobs make.
@Xerloq: You also need black jeans and white sneakers. But then people will think you're trying to be Seinfeld.
Remember, bonuses are not part of a regular salary.
$1 salary...how much in bonuses?
For the umpteenth time it's NOT A BAILOUT - IT'S A LOAN!
These guys' companies were failing long before the current financial crisis.
All of their executives should be taking pay cuts. If they aren't willing to lower their salaries to help the company, get new (cheaper) blood in. The people getting paid millions of dollars obviously aren't doing what needs to get done. It's time for new minds to work on the same old problems.
um yeah... sure... a loan...
its the type of loan no bank would come within 1,000,000,000 feet of. a high risk, no plan, competitors crushing the company, "not a bailout" loan.
$1. Whoooppie Dooo.
How much in bonus, how much in stock options, how much in loans that will be totally forgiven, how much in free corporate jet use, how much in hunting/ski/whatever junkets?
Corporate Fat Cats are Fat.
@TheSpatulaOfLove: It's not a loan if it is given out knowing the company cannot pay it back. The correct term for this would be federal grant. Now if we let them declare bankruptcy first and which allows them to cut off the control of union labor and restore the ability to fire unneeded workers, we could probably give them a loan they could pay back. But giving them a loan now means we will have to give them unlimited loans forever to prevent bankruptcy or lose all the money we give them when they are forced to declare bankruptcy next year.
Big freakin' whoopdeedoo! Those assholes can easily afford to work for $1/yr. They'll still get plenty of bonuses or whatever euphemistic bullshit term they come up with that equals the word 'bonus.'
The better solution is to get rid of them and start over, at least that would be a move in the right direction.
Sure you can have your retention fees, but if and only if each agrees, in 24 foot letters (or however large the font is) to put, in proper font, "FAIL" on each of their skyscrapers, right under the company logo.
On another note, should the Renaissance Center in Detroit (home to GM) now be renamed the Reformation Center?
I half expected to see Duke's hand connected to that dollar.
Shake it, baby.
Yeah, the'll find a way to still get paid their millions - just look at what AIG is doing!
I know car makers employ a lot of people and we would not like to see everyone of those loose their jobs, but honestly, can they just be allowed to mismanage their companies like that and get help with taxpayer money. Where is the punishment that any other business owner would need to take? Are these multi-million dollar business execs above the law? or above the common sense that rules most everything else? What are the moral standards of these people?
At the very least can anyone convince the gov't to require the same salary from the financial idiots who head banks up in the bailout???
For $1 a week, I wouldn't.
For $1 a week and the requirement that the CEO's company car be an '82 Chevette, a '74 Pinto, or an '85 Dodge Omni respectively, I would.
Call me when they disclose all their compensation in light of their salary. This is just more dishonest slight of hand.
@Triterion: the assumption is that if the automaker(s) entered chapter 11, the federal government would be a creditor & would receive payment from liquidation of assets.
one thing about the federal government - they always get paid.
A $1 salary last year would have left the poor Ford CEO struggling to get by on $19,500,000.00 compensation for the year.
Oh...The sacrifices these noble men are willing to make for us!
I am humbled.
can we reenact the burning of atlanta except with all these companies' headquarters? seriously, let's do it the french way. or the thai way. OR THE SOME OTHER WAY THAT ACTUALLY GETS SOMETHING DONE.
Re-write that as $0 in COMPENSATION and a statutory (i.e. with criminal penalties if not met) obligation to remit to the US Taxpayers an ammount equal to the sum of:
1. The paper-value gains in existing stock held in the company
2. All dividends disbursed in existing stock held in the company
3. The difference between the strike price and the price at the end of the year of all options granted until the bailout loans are repaid.
Said amount to be remitted yearly or whenever the big-3 piss me off.
Mitt Romney, of all people, wrote a great column a few weeks back about how any bailout ought to be conducted: fire all the executives, sell the status symbols, and appoint a gov't receiver to renegotiate every contract from the UAW down to the smallest parts supplier, with the goal of putting the companies back in private hands within a decade.
I didn't like Mittens much during the campaign season, but if he wants to come take over and fix this shit, I'll gladly change my mind. If he can do what his daddy did, well, "The Man Who Saved Detroit" could be governor for life if he wanted. He's not doing anything now, right?
I wish they would do something about lying dealerships and the scams they pull on customers.
@The Name's Ash78, Housewares: If you're going to make fun of Steve Jobs, do it right: it's blue jeans and a black mock turtleneck.
Back to the Dollar a Year Man of the 40's! If they want that solid gold toilet seat now they'll either have to start saving up their salaries or dig into their prior parachute funds.
@mac-phisto: Fine... I'm in debt to my ears, cause I didn't listen to anything anyone with a half brain's worth of sense said to me since the Carter Administration, and have enough cash to last until next Christmas, but nothing after that. Can I have a loan, too?
@CumaeanSibyl: Where Mittens may not be a good politician, he's a fine businessman, as exampled by the amount of money he has socked away.
This is the most unfortunate thing that could've happened.
First, this $1 salary is suddenly a major point in a bailout. Why exactly is it? It is absolutely irrelevant to financial troubles companies are experiencing and has nothing to do (should have nothing to do) with the decision congress makes.
Second, CEOs compensation should be tied up to the profit of the company. With a $1 salary, they will have a major incentive to hide their benefits. The most important goal of CEOs - make shareholders richer - won't be in any way connected to their comp. So they won't do it.
Why don't we drop this $1 bull***t and start talking about the real things in this possible bailout?
interesting commentary on npr this morning indicated that ford may not need the bailout money, but that at least one foreign automaker might qualify for assistance under the plan. any ideas on which automaker that is? daimler maybe?
note that this is not just happening in the US - EU automakers & chinese automakers are also in line:
[www.iht.com]
[www.bloomberg.com]
korean & japanese automakers have cut production significantly, but there's no indication of government assistance (yet). it's quite possible that they are waiting for the outcome of these hearings before they make a decision.
Maybe they could pledge to make cars the American public actually wants instead?
@Kekaha: Hear hear! Salary is practically negligible for these guys. Why these token, bogus gestures make any news is beyond me.
"We run our companies into the ground with awful decisions [insert 'CO2 warming is bogus' and 'now we've gotta make cars for hippies' comments from Mr. Lutz] but it's really the unions' fault! We need a bailout!"
Let 'em die like the dinosaurs they are.
All of those dealership financing commercials have just come back to bite them in the ass. Sweet, syrupy justice.
Mittens (I love that) promised Detroit that if he were elected he would do away with CAFE standards and there would be jobs for everyone.
Well, he lost and now he rails in the papers about how they should be allowed to fail.
Mittens is a sore loser.
@youbastid: Chrystler paid there loan back, tax payers made money.
Still, I think they're better off in bankruptcy. Let them rework their labor contracts and send the unions packing.
I don't give a shit what they pay the management. If you run a profitable business and make desirable cars, you can pay them a billion dollars if you make 2 billion.
Lay me out a roadmap to have every american car get 30+ mpg in 2 years and you can have my tax dollars. Till then, fuck off and die.
How will they pay for their personal airplanes?!?!
@lightaugust: if you're responsible for a million jobs, sure thing.
i understand being pissed off about this, but consider this: it's not entirely their fault. automakers around the world are having problems right now - even the almighty toyota is in a world of hurt. here's some cold hard facts --> [www.bloomberg.com]
let me ask you this: exactly what benefit comes from losing american auto manufacturing? don't the potential local, state & federal property, payroll & income tax dollars ALONE reaped from the largest manufacturing sector in america warrant a short-term investment to keep it going?
Sure, but then they'll each get a million bucks -- but it'll be called a "Financial Resource Distribution Package" instead of a "salary".