By Leftlane Staff
Tuesday, Feb 7th, 2006 @ 3:53 pm

General Motors today announced a revised health-care benefit plan for salaried retirees in the U.S. that is expected to reduce the company’s liability by about $4.8 billion and its annual health-care expense by almost $900 million before tax. It also announced salary reductions for top executives, including a 50 percent reduction for CEO Rick Wagoner, 30 percent reductions for vice chairmen John Devine, Bob Lutz and Fritz Henderson, and a 10 percent reduction for Executive Vice President and General Counsel Thomas Gottschalk. A 50-percent reduction in compensation for outside board members was also announced. Investor Jerry York — who became a member of GM’s board yesterday — suggested last month that GM should cut executive pay. Bob Lutz at the time rejected the idea. York has also suggested GM should dump two brands.

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