Iacocca losing pension, car in Chrysler plan

[RamboLiberal]

Source: MSNBC/Reuters

NEW YORK - Lee Iacocca, the car executive credited with saving Chrysler from bankruptcy in the 1980s, is to lose a big chunk of his pension and a guaranteed life-long company car due to the U.S. automaker’s bankruptcy filing two decades later.

Chrysler CEO Robert Nardelli told a U.S. bankruptcy court on Thursday that Iacocca’s pension would be among the obligations Chrysler will no longer have to pay if it gets bankruptcy court approval to sell itself to a “New Chrysler” to be owned by its union, the U.S. and Canadian governments and Fiat SpA.

Iacocca, the storied former chairman and CEO who revived Chrysler in the 1980s and appeared in car commercials, has participated in a supplemental executive retirement plan that was comprised of non-IRS qualified pension funds and is subject to bankruptcy.

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Chrysler has also written to former executives saying that as a result of its April 30 bankruptcy filing it will stop a program that furnished company cars to former executives and directors.



Read more: http://www.msnbc.msn.com/id/30996110/

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Always amazes me how greedy these former big shots are. They are already independently wealthy when they leave these companies yet the company continues to provide with numerous free perks like a car.

Many of course get private jet travel, luxury condos or apartments, etc. I think Iacocca did a good job for Chrysler but still this crap disgusts me. One of the bigger pigs I hate for this is Jack Welch, that guy had a bunch of goodies he could afford to pay for himself paid by GE. Its no wonder these "American" companies are now in such straits.

[KansDem]

1. Get a Prius, Lee...

Go green!

[Phoebe Loosinhouse]

2. I find Jack Welch repugnant for the same reason. His severance and ongoing perks

from GE are just obscene.

[RamboLiberal]

5. I heard so much crap from RW talk hosts about GM Job Bank

You know those laid off GM workers getting paid to go to the Job Bank and read magazine, watch TV, play video games, etc. according to the wingnuts & the cost to GM.

Yet they never mention the obscene costs of all the friggin' goodies these greedy execs take long after they leave their companies.

[madmom]

10. I read an article a while back, that said Wagner was still getting paid by GM because

someone (?) hasn't figured out whether he should get his golden parachute/severance package, since he was fired. He's really got to be worried about were his next meal comes from or if he can pay next months rent/mortgage.:banghead:

[liberal N proud]

3. I am sure Iacocca is doing just fine

It's the rank and file retirees who could be in trouble.

[havocmom]

7. yep, and I really think they are part of the reason the Big 3 drove into the ditch

They just do not want to fulfill their obligations to the workers. The workers gave concessions over the years, and pensions were part of their compensation for work done.

Big 3 execs need to be forced to take their come-up-pence with the working class.

[WriteDown]

4. Actually, Lee deserves the pension and the car

He was an amazing CEO and literally saved Chrysler. There is no comparison between him and Nardelli.

[xultar]

33. ZACTLY! I loves me some LEE Chrysler. That's why I'm a Chrysler Lover to this day today.

[HopeHoops]

6. Poor guy will be homeless within a week!

:sarcasm:

[gilpo]

8. But Lee's a Democrat....

How's Fox going to spin that?

[WriteDown]

9. So was Bernie Madoff....

:shrug:

[Romulox]

13. There's another one of those aggressively un-informed comments about the auto industry

I was mentioning before.

Unless you care to elaborate on the similarities between Messrs. Madoff and Iacocca for us. I eagerly await your response! :hi:

[WriteDown]

14. Did you mean to respond to me?

I was pointing out that there was zero similarity. :shrug:

[Romulox]

15. Sure did.

"I was pointing out that there was zero similarity."

You are the only one who interjected Madoff's name into this thread. :hi:

[WriteDown]

18. The poster before said Lee was a democrat...

I pointed out that so was Bernie and shrugged meaning that the interjection of his political affiliation stumps me. Who cares?

[gilpo]

30. I was making an obscure reference to the conspiracy theory...

that Obama is only closing Rep. dealerships. Sorry, thought someone would catch my drift.

[No Elephants]

28. Write Down just seems to enjoy claiming Madoff is a Democrat,' tho he never has any proof of that.

[No Elephants]

20. Um, all we really know is that Madoff was probably once a Dem, yet you keep posting that.

[WriteDown]

21. You edited your post quick..

I agree with you about Lee though.

[No Elephants]

22. Good grief. Stereotype much? No rich Jewish Republicans, huh?

I always edit. Most people don't respond as quickly as you, though so it usually doesn't matter.

[WriteDown]

24. So few on LI, its almost laughable....

I grew up in a mainly Jewish neighborhood though.

[No Elephants]

26. Still, you are using a stereotype to claim Madoff was a Democrat. He did contribute to

Democrats in 2008 (and some Republicans and some Securities PAC's) but the Democrats to whom he contributed were his local incumbents and 2008 was clearly a Democratic year, so self-interest is as likely an explanation for his contributions to PACS and individuals as anything else.

BTW, things have changed a lot since you were growing up. Used to was, anyone with an ethnic last name was likely a Democrat. It's far from that these days.

[WriteDown]

27. You could be right...

Been a while since I grew up there so its very possible. I'm fairly sure Bernie was a Dem though, but it doesn't matter one bit. There are plenty of scummy Dems, there are just more scummy Rethugs. Party affiliation doesn't seem to have a monopoly on criminal behavior.

[No Elephants]

29. I'm clearly left. But I am correct about the change in demographics of the Parties.

[Romulox]

11. Do you REALLY think that a pension and a company car is excessive compensation

for the service Lee Iacocca contributed to his company? :wtf:

[RamboLiberal]

17. Not Iacocca in general but far too many of these Big Shots

take a ton of free perks they could readily pay for from their company - I'm more pissed at the likes of Jack Welch.

You well know the wingnuts like to heap scorn on any perks the blue collar workers get and the unions.

[Romulox]

36. YOU started this thread. It's about Lee Iacocca.

:hi:

[totodeinhere]

23. Maybe not, but under present circumstances I think it's fair that he give it up.

The article doesn't say so but I'll bet if you ask Lee he would say that he will gladly give it up. And after all, as others have pointed out, he is independently wealthy and he doesn't really need it anyway.

Not all rich people are demons, although we know all too well that some of them are. Lee Iacocca is one of the good guys.

[Romulox]

35. Agreed. However, the OP is a hyperbolic broadbrush. nt

[AllentownJake]

12. I'm sure Lee is fine with this

He's a local guy. He loved that company and he still does good things for my community. He's also 84. I doubt he's driving.

[xultar]

34. Zactly #2. Lee Loved Chrysler and I'm sure he's sad to see this shit happen.

[No Elephants]

16. I like Iacocca. He not only rescued Chrysler (if only temporarily), but also saved

Ellis Island and got it preserved as a national park and museum, a witness to Americ'a immigrants. I think he got the Statue of Liberty repaired, too.

I am sure he was aware when he negotiated his retirment deal that bankruptcy would always be a possibility for Chrysler and his pension might go at any time.

Having the execs return the used cars seems silly, though, but perception is important, I guess.

[RamboLiberal]

19. I didn't get that they had to return cars they have

just they wouldn't be getting any in the future.

[No Elephants]

25. Both. Did you follow the link and read the entire article?

[RamboLiberal]

31. I did - where do you see they have to return cars they have in article?

From OP article link:

Chrysler has also written to former executives saying that as a result of its April 30 bankruptcy filing it will stop a program that furnished company cars to former executives and directors.

I see only that they will no longer get cars not that they have to return any car they presently have. Now maybe if the car is owned by Chrysler then it has to be returned. Depends I guess on how they register the cars they furnish. Were the cars "company cars" or was the reference to the fact they they were cars made by Chrysler company.

Ok, on edit you are right but I had to find another article to clarify.

The free car is apparently a common perk for retired Chrysler executives. The company has sent former executives a letter asking them either to return their free cars to a company lot, or buy them outright.

http://network.nationalpost.com/np/blogs/fpposted/archive/2009/05/29/chrysler-bankruptcy-costs-lee-iacocca-his-free-car-for-life.aspx

[high density]

32. Big shots always stack the system in their favor

Read through nearly any proxy statement of a public company and you'll find extreme perks awarded to the top officers of the company. Chartered jets with the wife tagging along, annual company car services for the CEO that cost more than if the company had just bought a Mercedes E-Class for the guy, thousands of dollars in relocation assistance, etc. Heck, even lower-end managers abuse the system by using corporate cellphones for both business and personal use (big IRS no-no) and crap like having the company pay for their home internet access. Shareholders seem to put up with it since those with big voting blocks of shares are part of the big shot club anyway.