oh no! no second-tier executives!

Yeah cause the last ones that made millions did such a great job. Some times you dont get what you pay for.

As usual, another stupid move by the government. Let’s think this through, shall we? A GOOD, talented executive working at GM now just got his pay reduced and limited for the next three years. This executive had nothing to do with the current mess GM got itself in. Over at Toyota, Hyundai, and Honda, this executive hears they are growing, and hiring, and there’s no pay limits imposed on them by the government. The executive does the only rational thing in this situation: he quits GM, and goes to work for Toyota, Hyundai, or Honda for more money and better opportunity. GM, needing to replace this executive who left, can only find inexperienced, under qualified, or incompetent executives who are willing to work under the government pay cap. So now you just had some talented executives who GM really needed, leave the company to the competition.

What the government needs to realize, in particular OBAMA, with regards to the automakers and the banks, is not ALL executives in these industries were negligent and bad. It was actually relatively few bad ones who did a lot of damage. You can’t apply these policies and restrictions that penalize ALL workers at these companies.

Personally… executive pay should come out of a company’s profits. You don’t make a profit, you don’t take any money home. It’s really that simple.

Uhh, this really means nothing. The “next” 75 execs do not make over $500,000 at either Chrysler nor GM. These are not banks where the real money is.

Well I would like to revise my comment. There are some financial investors at GM that probably make more than $500,000. They invest the employee 401 funds as I recall a recent article said.

found the article:

http://www.nytimes.com/2009/09/01/business/01pension.html

“Ms. Everett, chief executive of Promark, and 14 of her associates are among the 25 highest paid at the automaker. Their compensation has been submitted for review to Kenneth Feinberg, the government’s pay czar. “

Ms. Everitt is said to make $2million, so now she will be knocked down. Funny thing is that the 401 Promark funds are doing great.

Z06, great rant… and you’re right… but unfortunately it’s all but irrelevant. It simply can’t be business as usual no matter what level of executive we’re talking about because of the optics. There has to be a degree of discipline… punishment perhaps… to keep the new owners- you and I- at least somewhat pacified.

And I wouldn’t worry about the talent pool. There are plenty of good people out there… some of whom might even want to work for an auto manufacturer because, god forbid, they like cars.

the thing is, z06, that you’re talking about taking taxpayer dollars from people making 50k a year and using those funds to pay the salary of people making 10x as much…fact is, there has to be a consequence of bankruptcy and restructuring (albeit a temporary arrangement in this case)…it don’t think it’s reasonable to expect salaries to continue to grow or even be maintained (”business as usual” if you will) while a company is living on life support provided by the taxpayer…the alternative, btw, was not having a job at all (executive or not), because GM was facing liquidation…those executives who you say could so easily hop to another company probably wouldn’t have as rosy a job outlook as you assume…remember, practically every company has seen a sales decrease this year…companies are tightening belts across the board…this is not a booming economic climate, where you can hop job-to-job at will…

i understand the argument that it takes money to find good executives to help restructure the company…and i’m almost willing to believe it…but there’s something holding me back from supporting that idea 100%…the pay cap should be incentive for those within the company to get restructuring over with as soon as possible…goldman sachs paid off their TARP obligations ASAP…citigroup is trying to do the same thing…pay caps are providing some motivation to pay back the government and not dragging their debts out forever…

There are excellent people in the corporate world who are willing to do what needs to be done for the sake of business versus profit. GM is still riddled with those who are personal profit driven (aka Lutz) driven. It is the taxpayers money and the taxpayers should have the proper representation; some is better than none. GM’s survivability is still very much at question and to even be forced to take such additional measures as pay cap extensions now is a bit too late in the game. Unfortunately, GM is now the poster child, and future textbook case study for a large failed corporate institution thrown on the backs of taxpayers while the carcass was still warm.

AA, I normally do not comment on your comments but I had to laugh at your example of a person who is personally “profit driven”.

I am sorry but you are so full of it. Lutz is the one person at GM who has so much money he really does not care much about how much he makes. He only has a few more good years left to live and he has so many millions in the bank it is just hilarious to hear you spout off.

Lutz does it because he loves cars. He does not need the salary. Maybe he does it because he is the center of attention but it sure is not the money.

@carstuff: If it’s not about the money for Lutz, then why isn’t he working for free and giving his “salary” to help pay off GM’s debt?

Love of cars or not he is still a greedy money grubber just like the rest of them are.

at least by only making $500k, the married ones won’t have to pay into the Obama health care tax.

I agree with raine man. No profits should equal no pay for a CEO. Under the current bs even if a company losses money the white collar jasck asses still get a big salary plus a bonus.

If they cant live on 500 g’s a year then fark em…..that is plenty. If you are re building a company up from scratch sacrifices have to be made by all…..just like all us car lovers ARE FORCED to be bombarded with the liers who say the world will end if we dont use hybrids…….same coffee.. different cup…..
FARK U AL GOREEEE…u obese pig….. lol

““It’s the same disclaimer I’ve made for the last 10
years,” Lutz said in an interview from a conference room near
his design office in Warren, Michigan. “I will stay as long I
feel that I’m making a contribution, that I’m being listened to,
that I can genuinely move the needle and I continue to have an
important role in the company.””

Gollee, he did not say “as long as I am getting paid”

I don’t understand the big deal with the 500k cap. Over at Toyota, and Honda this rule has always applied. I believe the equation is 10 times the average factory worker max pay. It hasn’t hurt them at all. Its quite a different story at the asian carmakers in general. They don’t have unions. They don’t have high paid exec’s. They have happier employees at their plants and offices in general. So how’s the products they make?? Answer that yourself. GM could decide its good for them going forward to operate this way…..but those same people are there that put them in bankruptcy…nothing will change unless somebody makes them.

jdasch, that may be true in Japan but not here. Press made loads of money at Toyota before he went to Chrysler.

I would think a bailed out company should put everyone on government pay scales. It could squeeze out the talent who will go elsewhere and leave the less talented behind crushing the companies due to lack of talent. But it could also inspire them to pay back loans ASAP so they can return to more normal executive pay.

Same should occur at the stupid investment banks too.