GM Bonuses May Complicate Labor Talks

[Zenlitened]

Source: Wall Street Journal

GM Bonuses May Complicate Labor Talks

By JOHN D. STOLL and ED WELSCH (Wall Street Journal)
March 23, 2007; Page A2

For the first time since 2003, General Motors Corp. is giving bonuses in the form of stock to Chairman and Chief Executive Rick Wagoner and other top executives, a move that could complicate GM's efforts to get further concessions from its biggest U.S. labor union this year.

Mr. Wagoner received restricted stock valued at $2.8 million and 500,000 options, according to disclosures GM made to the Securities and Exchange Commission. A total of 18 executives disclosed equity grants in separate filings yesterday. The company will disclose full compensation details in its annual proxy, which will be released in late April.

GM's board made the stock grants, which will vest over time, even though the Detroit auto maker has lost a total of $12.4 billion in the past two fiscal years: $10.4 billion in 2005 and $2 billion in 2006. The company hasn't formally provided guidance on its 2007 earnings expectations and likely won't, due to a recent policy to not give detailed forecasts.

(snip)

Later this year, GM will negotiate a new four-year contract with the United Auto Workers union. GM is expected to push for significant cash savings related to health-care costs. UAW leaders have criticized top executives of the big Detroit auto makers for taking bonuses or other awards while they seek cuts in hourly workers' benefits and working conditions.

More:
http://online.wsj.com/article/SB117461832528046419.html?mod=home_whats_news_us

Read more: http://online.wsj.com/article/SB117461832528046419.html?mod=home_whats_news_us

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[Sapere aude]

1. Where else but in the US can you run a company into the ground and get a bonus.

My boss, the Cheif Operating Officer who quit at the end of last year, got a bonus each year he was here and we are on the verge of bankruptcy. Almost no one else has gotten a raise for the last four years.

He was an ass kisser and that's how he made it through.

[aquart]

2. What flaming brass balls these incompetent thieves have.

Edit: Actually, I suppose they're very skilled thieves.