Big three auto company CEOs to receive $1 per year more than they’re worth

Top car company execs pledge to receive $1 a year in compensation if US taxpayers bail their sorry asses out:

As part of its plan, Ford announced that the salary of Ford CEO Alan Mulally would be cut to $1 a year if Ford actually borrowed money from the government.

General Motors said that CEO Rick Wagoner also will accept a $1 salary. Chrysler LLC CEO Robert Nardelli agreed during Congressional testimony last month he would also agree to a $1 salary in return for federal help.

Mulally had a base salary of $2 million and total compensation of $21.7 million last year, according to the company’s filings. Wagoner received base pay of $1.6 million and total compensation of $14.4 million. Closely-held Chrysler does not disclose executive pay.

As painful and galling as it is, I get the logic of bailing out the auto industry. But as one of their prospective lenders, I say a condition should be that these rat-bastard CEOs get the heave-ho.

They sucked last year when they received annual compensation ranging from $14M to $21M. Some of them having been stinking up Detroit for more than 10 years, pumping out gas guzzlers and generally shitty cars in the face of looming fuel shortages and competitive forces we’ve known about for decades. They did nothing to address vital issues then, and there’s no reason to believe they’ll be more prescient and competent with a drastic salary reduction.

I could offer to teach calculus for $10 bucks an hour, and any university that hired me would save a shitload in personnel costs. But since I struggle to calculate a 20% tip in my head, it would be a poor bargain. Same thing here. Ford, GM and Chrysler need to kick these bastards to the curb. Then come talk to me about sticking their feedstaw in my wallet.

[Cross-posted at Betty Cracker]

Posted by Betty Cracker on 12/02/08 at 05:25 PM • Permalink

It’s Manny, Moe, and Jack ... three guys who missed the turn-off to the future.

Congress is complicit in this whole fiasco too by providing huge tax incentives for years for businesses and people who could claim to use their vehicles primarily for work (like, oh, dentists and stuff) to buy SUV’s but not to buy smaller, more energy efficient cars.  (Tax deductions are very limited for passenger cars which are defined as less than 6,000 pounds GVW.  Most SUV’s exceed that and are therefore exempt from the limitations.) This year they finally came up with legislation to expand the passenger vehicle definition to less than 14,000 pounds but, always a but, it’s still pending and hasn’t been passed.  Assuming they do get around to it the change will be effective back to January 1, 2007.  It’s absolutely pathetic that they waited this long to quit encouraging manufacture and sale of huge gas guzzlers on the excuse that they didn’t want to “hurt” the big 3 automakers.  Yet another reason why Congress richly deserves its current approval ratings.