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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02/07, 5:38 PM
posted by:
Wayne
wow they did such a good job of managing with big pay checks, how can you loose money with that big of a company? If i had lost that kind of money as a manager i would be fired!!!!!!!
02/07, 11:40 PM
posted by:
Angelo
Wwhat do folks think about the dumping of Saab and Hummer?
02/08, 6:49 AM
posted by:
John
I think that dumping HUMMER is ridiculous since it was a big moneymaker for GM in 2005 (thanks to H3 sales mostly), but then maybe AM General will get the HUMMER brand back.