Recent Treasury Department Audit Shows “Excessive” Pay Packages Dished Out To GM Executives In 2012
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Critics of the U.S. Treasury’s Troubled Asset Relief Program and rescue loans of General Motors and Chrysler are a little more flustered than usual upon hearing news that the United States Treasury Department couldn’t help themselves from warranting “excessive pay” to the Top 25 employees of AIG, Ally Financial, and GM in 2012, according to the Special Inspector General of the Troubled Asset Relief Program (SIGTARP). Ironically, SIGTARP is also a government entity.
The top 16 pay packages valued at over $5 million, consisting mostly of AIG bankers (of course), is also peppered with four Ally executives, and GM’s own Dan Akerson (3), Vice Chairman Steven Girsky (13), and CFO Danial Amman (15). Of which, Akerson was compensated $9 million, Girsky $5.4 million, and Amman at $5 million of combined salary and stock, according to SIGTARP. Rather than names, the list identifies everyone according to their position in the company. But it’s not hard to connect the dots.
However, the Treasury maintains that such pay packages are necessary to keep competitive talent around.
In a letter to Christy Romero, the special inspector general, Patricia Geoghegan, who is the Treasury’s acting special master for TARP executive compensation, stated that the Treasury ”has limited excessive compensation while at the same time keeping compensation at levels that enable the three companies to remain competitive and repay their bailout money,” according to an Automotive News report.
And in the next 12 to 15 months, the Treasury plans on selling off its stake in The General, making them no longer subject to pay rulings.
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It’s the American Way. Cut pay and beneifts for the workers and give to the guys on top.
We need to get away from this hostage-mentality around compensation. “If we don’t pay them a fortune they’ll leave!” Is there no passion? Are we all mercenaries? It would be nice to hear that there is at least ONE Steve Jobs-like senior executive at GM willing to tie him or herself to the mast and base his or her compensation on performance over the long haul while making a short-term sacrifice. Is there no one to set an example? Lord knows most of the members of the rank and file at GM have made sacrifices.
I like to think that’s why Mark Reuss isn’t on the list.