Holy trough snuffling, Batman! That’s one piggishly large salary. Not in absolute terms. In absolute terms it’s a pittance. Lest we forget, try as we might, Tom Cruise scored $20m for Eyes Wide Shut. And that was back in ’99. And you could make a case that that GMAC CEO Alvaro de Molina’s ’08 compensation package was money well spent. After all, Big Al Jr. was at the sub-prime specialist’s helm when it scored $6 billion from Uncle Sam’s magical bottomless pocketbook AND de Molina got the Fed to throw out the rule book and make GMAC a bank instead of forcing it to file for bankruptcy as they’d promised. Reuters! Break it down!
“De Molina was awarded a $1.2 million salary, $5.81 million of stock awards and $4.8 million of other compensation, offset by option awards of negative $194,000, reflecting the application of an accounting standard.” Needless to say, it’s the corporate jet—good for about $2.26 million of de Molina’s compensation—that will clip his wings. This despite the fact that GMAC says it no longer provides aircraft for business or personal use. Don’t expect Cruise to give up any of his three private jets. Then again, Tom actually makes money.
[In case you’re interested, here’s GMAC’s 10-K form]
The volume of these types of news items leaves me with the overwhelming impression that we in the USA are living in a banana republic. I know that’s an exaggeration, but that’s the first thing that came to my mind when I read the story.
De Molina was awarded a $1.2 million salary, $5.81 million of stock awards and $4.8 million of other compensation
If the stock awards mentioned are in any way related to GM stock, I rather doubt that the current value of the stock awards matches the quoted value.
Unless, of course, the GM BoB awarded around 3 million shares of stock to De Molina….
The companies are being run as nothing more than cash cows for executive pay and perks. They have each other’s backs so well covered you’ll never get them out.
NEVER.
Red Ink Rick and the Board of Directors will do such a tap dance for the bankruptcy judge…
Kirk Kirkorian was about to make BILLIONS on GM stock by just instituting Business for Dummies but RIR and the BoD told him to shove it as it may interfere with their pay and perks.
Both have already told the legislature they can shove their deadlines, rules, demands, and regulations.
Their arrogance is unparalleled, their seething hatred for cars and car buyers is without peer, their extended stupidity is unfathomable, and their lock on the management of the company is absolutely unbreakable.
These bastards are in it for every last paycheck they can get out of it and there is nothing that can be done about it.
Take down the picture where you can see the face of the child.
As one trade union official said in Australia when a CEO got a huge pay increase after sacking 1800 plus workers and moving the company to China, ” These {Australian) companies have lost their moral compasses” I would suggest that the only compass they own is the one that Captain Jack Swallow had. It points towards what they most desire, money!
That Gulfstream that the family is boarding is a fine aircraft – I recommend it to everyone.
Must be Take Your Kids to Work Day….