GM wants permission to pay its top 25 execs more (while racheting workers' wages under $14/hr)

[Hannah Bell]

By SHARON TERLEP And JOSH MITCHELL

WASHINGTON, D.C.—General Motors Co. Chief Executive Daniel Akerson said Friday he wants the Obama administration to relax executive-pay restrictions placed on the company after last year's government bailout.

Mr. Akerson, in his first high-profile speech since becoming CEO in September, said he will meet later Friday with Pat Geoghegan, who replaced Kenneth Feinberg as the overseer of pay limits for companies that received money from the Troubled Asset Relief Program. Mr. Akerson said the auto maker has been able to attract quality executives despite the pay limits, "but we're starting to lose them now."

Participation in TARP entails putting limits on a company's 100 top-paid executives. The U.S. Treasury must specifically approve compensation of the top 25 executives.

http://online.wsj.com/article/SB10001424052748704457604576011314012028354.html


Yeah, now that the financial corps are back in the black, all the sharks are moving on.

These people are worse than the french aristocracy before the revolution.

[Norrin Radd]

1. FFS! kr

[chill_wind]

2. "These people are worse than the french aristocracy before the revolution."

I've been thinking that exact same thing- a lot- these days. I think that's no overstatement.

[hobbit709]

3. They need to get the same treatment to make them pay attention.

Introduce them to Madame Guillotine.

[tpsbmam]

4. His comment on salaried employees, who WON'T be receiving a raise:

Mr. Akerson also said GM's salaried employees won't receive a pay increase in 2011 as part of the company's efforts to maintain urgency around cost savings as last year's bankruptcy fades into the past.

So a secretary making $22,000/year* won't get a raise but the fat-cats will. What a load of bullshit...to be dumped once again on the lower paid employees. I'm placing my bet on them getting this approved -- why would the Obama administration change stripes now?

(*Everywhere I've worked, secretaries, assistants, etc were salaried & not paid by the hour.)

K&R

[Vinca]

5. They should have to give salaried employees a raise that is the same

percentage of what an executive is getting. If a suit goes from $1 million to $2 million, salaries double for the peons.

[postulater]

9. Plus the exact same stock options.

[Starry Messenger]

6. recommend.

[jp11]

7. One need only read this to see what's wrong with American Capitalism.

The workers don't get raises or get pennies a year but the CEO's get millions along with other high ups because obviously the company would go down the tubes if the person willing to work for millions a year as CEO was the 2nd pick as the 1rst pick wanted more money.

I wish the government could control more companies and keep them from giving out raises to CEO's and other high ups, maybe workers would actually get wage increases to go along with the times we live in as hasn't happened for decades.

[myrna minx]

8. The GM plant in my hometown closed down throwing thousands

of middle class tax payers out of work - so to read this is just devastating.

[Thav]

10. Well...

Mr. Akerson said the auto maker has been able to attract quality executives despite the pay limits, "but we're starting to lose them now."

Sounds like your "quality executives" are only looking for a "quality paycheck" rather than a "quality company." It used to be that an employee would buy into the company's goals and future. Since the economy has shifted, and companies only are looking to the end of the next quarter instead of 5 years down the road, you will see more of this.

The workers stay at their jobs because they're scared to death of losing their income, whereas the "quality executives" look for the highest bonus every quarter, regardless of which company it's at.

It sure sounds to me that GM doesn't have the "quality executives" they say they do.

[Ichingcarpenter]

11. Oh..... Good ... Obama is meeting with Nation's Top CEOs

I'm sure this will come up.