GM Pays Ex-CEO $8.6 Million
Posted on Jul 15, 2009
What exactly does an executive have to do to not get a golden parachute? Former GM CEO Rick Wagoner ran the company into the ground, and will now retire with $8.6 million for his trouble. That figure was negotiated down from the $23 million the old pre-bankrupt GM would have had to pay Wagoner. Sorry Rick, but it’s a rough economy.
The value of Wagoner’s retirement package is about 60 percent lower than it would have been at the end of last year, before the largest U.S. automaker fell into a government-funded bankruptcy and its assets were sold to a new GM, federal regulatory filings show.
The former top GM executive reached a retirement agreement with the old GM, now renamed Motors Liquidation Co, on July 8 and will retire officially from the new GM taking benefit cuts consistent with other retirees, the company said in a filing with the U.S. Securities and Exchange Commission.
Flickr / Franco Folini
Rick Wagoner’s retirement package may barely keep his Hummer in gas, but it’s a pretty sweet deal for the guy who drove what used to be the world’s biggest company off a cliff.