Chrysler is doing just about everything it can to cut costs in order to secure more federal funding – including dropping the thermostat down a few degrees — but apparently those over at Chrysler Financial aren’t quite as selfless.
According to the Detroit Free Press, Chrysler Financial was denied additional federal dollars after some of its top 25 executives refused to sign a waiver that would have put a cap on executive compensation. The waiver would have also put strict restrictions on executives going after further compensation – from either Chrysler or the government — through the legal system.
It remains unclear how much the refusal cost Chrysler Financial, but the financial firm has already received $1.5 billion from the government’s Troubled Asset Relief Program.
The news that many within Chrysler Financial picked their own personal wealth over the wellbeing of the company is quite shocking, especially given how close the company is to bankruptcy. One of the government’s biggest sticking points in giving further aid was concessions at all levels, but it sounds as if that still excludes the executive ranks.
