In an article about US Treasury Secretary Tim Geithner’s inability to tie his own shoes, the Washington Post leads with the heretofore disclosed fact that Wagoner’s looking forward to a $20 million payday. While the Post paints Geithner as an incompetent manager, that’s a no-win proposition no matter how you look at it. Stiff Rick and the guy’s bound to reveal the finer points of Uncle Sam’s takeover of a [former] blue chip company, including the deal they promised Wagoner to get him to jump. Pay him off and the howls of indignation will rile the nation, pissing off potential GM customers, further sinking “good” GM’s ability to sell someone a car.
Did Timbo and his Presidential Task Force on Automobiles think they could sneak in the $20 million golden FO&D amongst the rest of the thousands of GM creditors who will seek financial redress from the federally owned and operated automaker? What’s the bet the PTFOA’s negotiating with Rick right now, for some kind of less shocking annuity or a plain old reduction? I’d also wager that Wagoner is a plenty tough guy to do business with—when it’s HIS money in play.
Meanwhile, corrupt hedge funder Rattner goes full speed ahead with his 15,000 sq ft vacation pad.
I’d love to trade problems with this thief.
http://www.nypost.com/seven/05182009/gossip/pagesix/car_czar_steven_rattner_rides_over_viney_169861.htm
STEVEN Rattner, the auto industry adviser to Treasury Secretary Timothy Geithner, is flagrantly thumbing his nose at President Obama’s call for Americans to make sacrifices in the collapsing economy.
Rattner is moving full-speed ahead with construction of a lavish, $15 million summer home in the Lambert’s Cove area of West Tisbury on Martha’s Vineyard — a palatial mansion he’s had in the works since 2006. It’s caused a furor among wealthy Vineyard residents, who’ve called the planned 15,500-square-foot project far too big and gaudy, The Post’s Mark DeCambre reports.
Barry;” ….and you know, Rick, thats change you can believe in. Just delayed a little”.
Remember, as Rick said himself a few short months ago, “I’ve got a son in college.” He’ll need every dollar he can get.
“…further sinking “good” GM’s ability to sell someone a car.”
What do you mean? The new GM will somehow magically be able to sell Americans millions of stylish, luxurious, high-performance, fuel efficient made-in-China cars the day it emerges from C11. That’s really all the US market has been waiting for to spring back to 17M annual sales.
If that weren’t the case, this whole plan would make no sense at all. ;-)
Wagner’s severance package has been known about for some time. Here is an article about it from March 30:
PAYDAY: GM’s Rick Wagoner Drives Away with $20M Retirement
The same article mentions that payment of the $20 mil was blocked by Treasury. Since the package was offered by GM and stopped by the Government, I’m not sure how you concluded that Geithner was trying to sneak it through. Would you have a better opinion of Geithner if he allowed the $20 million to be paid?
motron
Damn! Missed that one. Actually, we didn’t. I just forgot. (Millions, billions; who can keep track?) Anyway, here we are, now. Text amended and all.
As I said in my post, it’s a no-win situation. The BOD that approved this obscenity is to blame. But now that we own GM, whatcha gonna do when Wagoner comes for you (i.e. your money)?
Speaking of, here’s evidence that GM is treating chapter 11 as inevetable…
there was no bigger critic of Red Ink Rick than yours truly. some of his actions bordered on criminal activity. his record consists of tens of billions in losses and a virtually complete devaluation of our common stock. the man is lucky to have avoided prosecution…yet.
Me thinks $20 mil for red ink Rick will be small potatoes compared to the reaction of average taxpayers when they find out they are funding tens of billions for $3200 / month UAW pensions and platinum benefits.
I have a simple solution to this. Don’t pay him. Put Wagoner in the position to have to sue the Fed Gov’t to collect this $20m, unless he agrees to negotiate the amount down to something like $1-2mm.
Get this thing tied up in court, forcing Wagoner to hire attorneys and expend money. I would have to believe that this kind of ‘gun to the head’ approach would work with Wagoner. Since he really hasn’t earned a nickel of his severance or retirement or whatever pot of gold we want to call this, just keep delaying paying him. Since the Feds most likely have an army of salaried attorneys, how much would this really wind up costing the taxpayer.
We should be charging his ass for the damage he did to the company while he was head honcho not rewarding him. Didn’t he destroy about 90% of GM’s value while he was in charge, I think it’s fair for us taxpayers who are paying ot clean up his mess to take 90% of his net worth earn while operating as CEO. Sounds fair to me, or better yet listen to Buickman and send him off to prison.
Redbar…: I was thinking along similar lines for about a year now, but w.r.t. the bankers … can’t tell me that if they had to give back 90% of everything over 5M USD/year for the last 5 years running that they would suffer… let them start from “zero” as many of our 401(k) will have to do…
I also remember Rick’s testimony regarding the 1$/year and having to pay his son’s tuition … where does sonny-boy go to school, and how many decades does daddy expect to have to fund him??
(just another lame-o statement from the king of gold-plated polished turd statements… full-disclosure: I was OK with Mullaly’s answer to the same question: “I think I am fine where I am.”)