wow, this is wonderful news

They will still make more than me

At $200,000 you will see mass exodus at the insurance/financial institutions UNLESS they are promised lots of long term income. However most of the insurance/financial institutions pay LOTS of their top execs multi millions and they will not be able to take such a cut in pay for the short term so we will see mass exodus even if they are promised long term money.

The auto industry however pays nowhere the same kind of salaries. The top guy only makes just over $1 million while the financials pay in the 10’s of millions. The autos have already seen many of their execs leave and those that have taken over the openings did not get big raises. So will not see mass exodus and the promise of future stock value will keep them there.

And what bonus’s? There are none at GM and Chrysler and I do not think at Ford either.

At least they will make less than $250k and wont get their taxes rais …. oh wait, scratch that. I think the latest line is “if you make more than $2,500 Im gonna raise your taxes and eff you good. And if you object you go on the enemies list”

Change you don’t want but will pay out the butt for.

Well it looks like Fritz will only be taking a 25% pay cut.

I don’t know whether this is good or bad. It has its good sides – I’m sure there are many people who are getting well paid but undeserved. But the bad side is that the real innovators may gravitate elsewhere – where they can get paid well. Who knows how this will pan out? We’ll see.

Well my dream to be a large firm CEO is now dead… I could just work my way up the Taco Bell ladder to Store Mgr

Don’t fret now kids… this is all about optics and nothing more. The instant the clouds part and blue sky reappears all these guys will be back to showing up at work each day with their wheelbarrow in tow to haul home the goods. I think they’ll survive in the meantime. Unlike most of us living paycheck to paycheck ceased to be an issue with these guys a long, long time ago.

Is Obama out there to get rid of all people who make over 250k?

They shouldn’t get tmany of the ax benefits they can get, but neither should they be forced to pay a higher percent on their taxes like you or I… Locks us all in poor.

you missed the entire point of the article, jayjc08…the story goes like this: if your “too big to fail” company imploded so massively that in order to prevent a depression of historic proportions the government had to infuse your company with billions upon billions of dollars, you should not pay your executives billions in salary and bonuses while sucking off the public teat”…

obama is not trying to “get rid of all people who make over 250k” – that’s really an idiotic thing to say…do you want your taxes to pay for some AIG a-hole’s bonus when he’s making 100 times your salary? apparently you are cool with that, so why am i asking… about you just take your wallet and send it to AIG now and say “charge whatever you like, great job with that whole derivatives insurance thing”…

unbelievable…

you are right Johnny,

LWAs right that Oblowhard is not out to get rid of those making over 250k. He is out to tax them into oblivion or social servitude, but dont fret – Oblowhard is a fair man and has now raised taxes on us all, plus is raising them on the unborn because they must be his slaves too.

LWA – about sending our wallets to AIG, Oblowhard and Bush before him, along with Geithner and Paulson, have done that for us. They did it all without much in the way of controls and stipulations and so the reports today are that we probably wont see all the money back, but hey, we all know Bush was stupid to do it but Oblowhard, the shìtbag in chief, was brilliant, and all that crap you worshippers believe.

unbelievable….

Sorry to parrot your instincts, Canadian, but I had the same thought. If you think the three examples the story illustrates will end up making $130,000, $72,000, and $52,000 respectively, you should also be made aware that, yesterday, Webster removed the word “gullible” from the dictionary. And if this does come to pass, they’ll leave. My guess is that you’ll be told what you want to hear, and all the brass that doesn’t need removed for the sake of PR will be juuuuust fiiiiiiine, thank you very much.

This is Awesome News even with a 90% Pay Cut their earning 130,000 a year. I suppose that is chump change to them; however, that is a sharks (attorney) starting salary out of law school. And still MORE THAN HE IS WORTH. GM CEO Fritz Henderson should be and is lucky to be Working! I’d cut em down to $1 a year salary with what he already has in the bank and investment. No ONe and I mean no one can touch these RICH A******** even after the one year Salary they get. Their Home, Their Kids college Educations are paid for in advance, their Trips are well planned. Best Health Care and best of everything else! Why so far off the common working man or even college Grad with a 4 year Business Administration Degree! ITS WRONG AMERICA ITS WRONG PEOPLE. I LOVE IT Keeping Cutting CZAR NO DO WALL STREET!!!!!!! THOSE FINANCIAL MONEY PIGS ARE THE GREEDIEST POS GOING!

Cant remember where, but I actually read the salary cuts were not so much cuts as they were compensation conversions to pay-outs that were longer term in nature … such as “instead of the 4.8M cash you will now get 240,000 shares at $10 each vesting at 2,000 shares a month for the next 10 years as long as you stick around.” Kind of like the same noose 401k vestings loop around your neck.

Good. Serves them right for running two worthless companies.

Well, if the CEOs have signed contracts stating their pay is $X million dollars, then that’s their pay. A contact is an oath to to whatever, in this case companies promised the dough… so they gotta pay up.

The only way to renegotiate that is via voluntary renegotiation or bankruptcy… so it’s possible for GM and Chrysler. Bankruptcy, by definition, is the tool that allows companies to redo their contracts so they can return to profitability.

As for the banks, we bailed them out before bankruptcy… so they still have to make good on their word for good or bad, rich or poor. (ie: side-effects of not allowing bankruptcy)

Anything else sets a bad precedent.

The autos could not attract talent paying seven figures – jeez what do you think will happen now?

fishsticks… this is a blip. They’ll be back to attracting 7 figure “talent” before you know it.

I wonder why this hasn’t been applied to the highest paid federal employees? Talk about a savings.

i’m still waiting for you to retort with facts, smeg…it’s pretty much all the same retarded insults over and over…zzzzzzzzzzz…i will agree that it’s not just obama…i would argue that over the course of your lifetime you are more influenced by goldman sachs than any administration in the white house…goldman and aig made out like rockstars with the bailout (goldman even more so because they paid back their loans and can pay themselves whatever they like, as mentioned in this article), and they were at ground zero of the financial crisis…major frontline players…if you want to see where real power lies, look no further than goldman…

that’s partly why i fight guys like you on all this petty republican/democrat bs…you’re way over-focused on the president, as if bashing that guy will do anything…at all…ever…presidents change, yet companies like goldman exist for decades and exert immense control…do you hope to retire someday? own a home? insure it? all these financial devices that you submit yourself to are under their control, not yours…

i gotta think that there are guys at companies like goldman that just sit back and laugh at all the political squabbling, because that’s not where true power is exerted…if the right wing guys like yourself that constantly toss insults at obama showed any sense of the bigger picture, i’d give y’all some credit, but typically you don’t…

leftwing… I’m probably preaching to the choir but in the unlikely event you’ve never seen the original Rollerball I think you will appreciate the underlying theme.

All I hear is a hammer and sickle……..

Well leftwing, not to rain on your parade, but that rant just sounded like one big politically fueled argument if you ask me. Personally, I don’t pick sides, but who says you’re ideals are correct? Respect other peoples political opinions – frankly you typing in these comment boxes won’t change anyones mind anyway. Nobody sits here and tries to convert you to the opposition. Anyone that makes a comment about the poor management of the government is simply voicing their opinion, and the president is often the scapegoat. Do I think the government has done a bad job? Some parts yes and other parts no. TARP was a mess at around $800 billion with no paper trail on half of it. Bailing out the automakers was necessary. Spend well under $100 billion saving this nations largest manufacturing infrastructure, or let them wither while you pass out more money to a single bank, with very little examining, than you do to both automakers while you continually berate them for a plan? They handled the automakers relatively correctly, and all the banks should have been berated like GM and Chrysler were. It is an opinion. Deal with it.

I love how people are angry at the current and the former president that they bailed out companies that failed and now when the execs of those companies are punished, people are angry about that.

leftwing- I understood that before I wrote my comment. The only reason why I brought it up is because just as Obama is limiting these guys salary, he’s basically putting salary limits on everyone else. With the taxing brackets that Obama would like to put on us it would create unfair taxes on the rich instead of just closing up some of these tax breaks they unfairly get. That basically locks everyone in under a certain salary unless they can leapfrog the system.

If you had read my really short comment though, you would have realized that I wasn’t directly talking about these CEO’s.

There’s also a reason why jobs like these (CEO’s, etc) pay a good amount. Not saying the people in that position are fit for it though, or fit to be payed with my money…

*paid, not payed

fishsticks you miss the point. You could get someone 60K a Year and they could outdo the Lazy Blue Bloods club that own those Top Exec positions or do nothings. Its a Rich Man’s play land and hopefully not anymore- the only Bastion for the rich is sending their brat kids is off to law school to pass more laws protecting the very rich and enslaving and over taxing the middle class and the poor in this here USA.
What do you call 500 Lawyers in the middle of the Atlantic a GOOD START!

LWA, are you arguing that this administration has not raised taxes on those under 250k? Expand your scope beyond “income taxes” only and you will see that tabacco taxes are up, they are pushing for more energy taxes, and now their healthcare crap wants to tax anything that breaths. Pull your head out of your butt for once, okay? Those are facts. You posts are no better than mine, dude. Crap like “me scientist, so me correlate things” is what you call a fact. That’s nuts.

The reason I focus on the pres is basically the same as the reason your panties are bunched about goldman. The prez and the gov can eff up my my and any life more than goldman. With the healthcare grab, the gov will hit about 50% of the economy – that means you will always be wrong about goldman, because goldman does not have the other 50%. It’s mathetically impossible, effectively. A bunch of shìtheaded pols will run it, and they have ALWAYS run everything they touch into the ground or into bankruptcy. Always.

People like me just want them out of our lives and our incomes. Just stay the eff out! Why that is so tough for you to get I will never understand, but then again I dont go around with the assumption that I know what is best for others like you lefties and righties do. I know what’s right for me and I dont care whats right for you. I am not my brother’s keeper, I am wildly self-sufficient and to the extent that I believe in any government at all, it would be for items that probably 90% agree with (police/fire/nat’l defense/basic schooling – that’s about it, and 3/4ths of that is local, not DC based), and I dont need some a$$wipe in DC telling me what lightbulbs to buy. I don’t need you to either, and that goes for health insurance, grabbing more of my income (dont ask), and enslaving the nation and its future to a leftist ideology managed by corrupt clueless morons in DC that has been proven to fail virtually anywhere it is tried on a large scale. You may relish in failure, but I dont. The Constitution is a structure that will succeed – the country is failing because our DC overlords use the constitution now to wipe their buts … what did they call it, “quaint?” When they say that my thoughts about people like the DC overlords border on the illegal – but that’s only because thought-crimes (a very unconstitutional concept) are in vogue in DC.

The same admin (including Congress) that voted themselves a pay RAISE last Fall amid the turmoil is now telling others what they can/not earn. I’m sorry but that doesn’t fly and it’s truly arrogant thinking of Obama, Congress and all these unregulated specialty “czars” that they’re making a difference to my pocket. It’s all BS posturing and not “change I can believe in”.

Sadly I see a lot of wealth envy going on. Bad management is the responsibility of stockholders – that is who decides their pay – don’t like it don’t invest. Government deciding pay is unnecessary – unless the government propped them up – shouldn’t have but did. Not one of these business can compel any of us to buy their products or there stock. However, the government has compelled us to invest in their stock. Only the government can compel and they do it with the threat of incarceration or lethal force. The problem we seem to have is the (big) businesses have bought themselves some nice political protection and are using that to support themselves, protect there business, reduce competition, etc.

Particular to the automotive companies – we should have let them go bankrupt. Management would have lost their jobs (zero pay), the stock and bond holders would have been punished financially – and in the end the assets would have been bought by new management – such as Penske or others. Instead all of us were made the guarantors for stockholders, management, and bondholders of these turds via the government. Look who won – management, unions, states with poor economic diversity, bondholders. Who lost? We did as taxpayers. Investors were not buying these turds for good reason. Look at Ford (stock price, sales) – they have done great and with fewer competitors they would be doing, perhaps, fantastic.

I LOL’d so hard at the people who honestly thinks that an un-regulated free market should exist because they think the government should not be involved in anything related to the word “economy”.

The real story:

Under new pay restrictions for companies that received federal assistance, General Motors Co. CEO Fritz Henderson will get less cash but may see an overall larger pay package.

Henderson’s total compensation package will increase to about $5.5 million under terms of the pay plan, a person familiar with the documents said.

Henderson’s cash salary, which was $1.26 million, is being decreased by 25% to $950,000. He will receive stock and restricted stock in GM valued at about $4.2 million.

the only issue I have with the latest Obama rules it that part of the past problems was that execs got paid the big bucks when the stock went up. So they always looked for the short term bang to get wall street to invest in it. However the long term got screwed. Look at the UAW. GM caved in year after year to keep the profits going, but int the end they were cutting vehicle content to stay profitable and lost sales (jsut part of the reason). So after 40 years of getting screwed by the UAW they finally could not compete and went under.

NOW GM is the low cost producer in this country with little debt and will be making great profits. Just hope the execs look to the long term and keep the company viable.

Good stuff carstuff. I also read many of the people who will have their pay frozen at AIG and BofA are no longer even with the companies. It sounds like the pay cuts are for political cover and not real effects. (sources: Bloomberg)

http://boingboing.net/2009/03/17/foxs-glenn-beck-says.html

FishFillet I would agree with you to the extent of if they did’nt come out with the right product they deserve to go bankrupt and maybe it would have worked better for Chrysler and GM that way. I am not a fan of GM. They are the Biggest bunch of BRaggadosious A-H**** going. CHrysler I think always Tried but never had the resources. I wish after Iaccocca left their was a true successor with a Real Vision for the Future.

Yea, those that supposedly caused the failure of the financial and insurance companies are gone. Now they are punishing those that are trying to keep the companies viable. Now that their pay will be lower they will probably leave and they will only be able to hire the idiots on this site that think they can run anything:)

What is interesting at GM is that of the 25 top paid execs that will be taking the pay cuts 15 are financial investors that invest the employee savings in the employee 401’s. That’s how bad it is in this country. Those that actually produce something make so much less than those who just invest the money.

Leftwing Agenda, sorry bud but you’re wrong on many accounts. The power does not reside in the business sector, it resides with the government. It resides with the government because they make the laws and business abides by them. Business chooses the path of least resistance. Government makes a new tax law, businesses change to work with the new law. Second, people are bashing Obama because he and a few other whacko lefties will destroy this country with taxes, cap and trade, and health care. Actions speak louder than words. All the democrats out there can bury their head in the sand while they play ‘ra-ra root for the home team’ and ‘everything wrong is Bush’s fault’ but meanwhile the value of the dollar is going into the ****ter. If you want to see where we are headed, do some research into Argentina and their fall from 1st world to 3rd world nation.

With regards to this news snipet, everyone loves seeing the other guy get it handed to him, until it’s their turn. I’m not sure what is wrong with people today with all of the class warfare and senseless banning of trivial things. Anyone who thinks it’s okay for the White House to dictate a corporate CEOs salary deserves to have their salary regulated by someone less fortunate than them. If it’s okay to do it to one, then it’s okay for everybody.

Carstuff – great insight! So you’ve identified the problem… people are not choosing to invest their own money. And many others have figured out the same thing, those ‘rich’ guys are investing their money. But how many people do you think will make the next logical step and start investing their own money? Sadly, I suspect they’ll continue doing the same as they have been… doing nothing to change the status of their own lives while calling for the destruction of others.

That is the difference between a ‘rich’ person and the rest.