Big Bucks for GM Boss
Posted on Feb 20, 2010
It seems that the romantic notion of cutting back on executives’ astronomical salaries, especially execs at corporations that benefited from government funding, hasn’t exactly caught on like wildfire in the American auto business. Take General Motors, for example—at one point, it seemed that the Detroit giant might not be long for this world, but then, thanks to the magic of the bailout, GM survived. And now, to show its gratitude, the company is ... rewarding its new CEO with a salary that’s comparable to what his predecessor made in 2008. —KA
General Motors (GM) has said chief executive Ed Whitacre will get an annual salary of $1.7m (£1.1m), plus $7.3m in shares at a later date.
The pay package was approved by the US Treasury, which spent billions of dollars bailing out the carmaker last year and now owns a large stake in it.