New govt. New rules regarding executive handouts. We're witnessing a change from capticalism to socialism.

Yet the more things change, the more they remain the same. Does someone see a continuous trend here?

I'm very peeved that Rick is getting that handout. Reward for failure. Is there a likelihood to end this trend? I, for one, don't believe so.

 

Thats what it is, right on the dot. Reward for Failure..... see any similarity's with the banks?

Gosh, I knew the post would be up soo happy it did. Many people think he was a good CEO .

But in all reality, anyone who works for GM knows it was HELL today. In Warren Tech Center, it was a complete choas, people being cut and promoted randomly all in one day. It messed up all the projects.

 

I can't put my finger on it at the moment, however several news sources have indicated that Wagoner will stay on in an advisory role so GM won't have to buy him out. i.e. He's not getting a handout.

 

*Warning - unpopular opinion ahead*

How different is it than offering UAW and white collar workers buyouts? In all seriousness....RW was the captain of the Titanic, so to speak....but he was (is?) still an employee.....

 

It's not like a buyout, because in a buyout your asked to quit/retiree. In RW case, he got neither because GM didn't ask him to quit/retiree. Obama asked him to step down.

I think he wanted out too.... he didn't seem to really fight for his job, he sounded like he wanted out.

 

Fine. Offer Rick the same sum as GM is offering the workers.

Why does he deserve $23M as captain of the SINKING ship?

Why is my opinion so unpopular in your view? Is it because it's different to your mindset? I just don't like the trend I see yet we are led to believe things will be so much better... yet the country (nay the global economy) is still in the toilet. Nothing much is changing even with the 'change in power'.

No matter which way you look at it, Rick failed in his 10 year reign. Simple as that.

 

It's clear he wanted out. The plan that he presented to the White House on 2/17 proves that Rick wanted to leave. He wanted to get off this ship as fast as he could and once he realized that he was defeated by the bondholders and UAW he said "F*ck it" like any of us would have if you're staring $23 Million of guaranteed cash in the face as opposed to standing idle for another 3 months "hoping things get better."

He had to go, but he was also a scapegoat. No doubt about either in my opinion.

 

I meant that MY opinion was going to be seen as unpopular.

 

Really? But I thought I was the unpopular figure?

My apologies.

But do you honestly believe Rick deserved the $23M handshake goodbye? The more I read, the more I believe he was a failure at the top.

Let's hope the govt doesn't take as long as Rick to turn the ship around.... 10 years. SHEEESH! No thanks.

 

Oh, Rick was a colossal failure. You don't need a corporate finance degree to look at GM's wealth destruction under his leadership and see that.

Still, I guess I don't get caught up in the severance packages and the "CEOs are evil incarnate" mentality. Just as the line worker gets offered six-figure buyouts in line with their salary, I suppose the CEO gets the same. $23M is a staggering number to you and I, but keep in mind that $23M translates to just a fraction of what GM lost each day last quarter. So I really don't think it's even that big of an issue.

I wish Fritz Henderson all the luck in the world - because quite frankly, even IF I was qualified to hold such a position I wouldn't want to take it on, regardless of salary.

 

Another case of people making more out of something then it really is...

He is not getting a severance package. The $23m number is the value of his pension package. That number is not out of line with someone who worked 30 years and spent the last decade making millions as a corporate CEO. I know of plenty of people who make less than 6 figures a year with millions in their retirement plans.

IMO, People need to get a grip and stop running around looking for minor things to fixate on. Unfortunatly you cannot take retirment packages (that Wagoner himself likely paid into) away because someone was not great at their job.

 

thank you.

 

So he get's his salary PLUS stock PLUS bonuses PLUS pension for his services for the past 30 years. I dare say he is worth more than the $23M his pension is worth to him.

But as you say, it's below average.

 

Interesting idea here. I hadn't thought of it that way

 

I dunno...you can look at it two ways. Either Rick was set up to fail..and it would have taken Superman to fix GM's issues............or Rick is the cause of all of GM's issues.

I tend to take the view that Rick in an average CEO who was put in a position that would take a rockstar CEO to produce anything but failure. Though I don't agree with alot of his decisions he made, no one doubts that Rick did not act with the companies best interests in mind. Also, keep in mind, most of his term as CEO he had Bob Lutz by his side (who for a while had basically final say on product). I don't see anyone suggesting that whatever Lutz's retirement compensation was should be taken away. Lastly, despite the failures under Wagoner's watch, GM's board and shareholders were satisfied enough with him that it took the President himself to get Rick out the job. They are the ones who should be losing bonues and dividends allowing a below average job to be acceptable for almost a decade.