Huge Pay Cuts Coming For GM, Chrysler Execs
When GM and Chrysler accept the US government handouts, the US taxpayers became massive shareholders in both companies. And as always, those companies have to be responsible to their shareholders. Of course, in this instance, that responsibility is administered by President Obama’s administration.
And those administrators will apparently be knocking on the doors of the top 25 executives in both companies and their respective financial branches with pay cuts to the tune of up to 90%. According to early reports, the average pay cut for these 25 individuals will fall around 50% and should help to reduce the astronomical operating costs when you consider that some executives in the struggling firms are making well over $1 million a year.
And while none in the treasury department will discuss exact details and amounts of the cuts, the cuts are expected to parallel those made at other firms that sought out TARP fund assistance. AIG, for example, accepted the handouts and thus have a government-imposed $200,000/year salary limitation for any employees.
