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Pay czar trims salaries at top of GM exec ranks

Reuters -- The U.S. pay czar will slash the number of top General Motors Co executives who will receive base salaries of more than $500,000 this year.

Pay czar Kenneth Feinberg said he plans to release the 2010 compensation decisions next week on the five large U.S. companies that are under pay restrictions as part of their government bailouts.

The rules restrict the top 25 executives from receiving more than $500,000 in base cash salary unless a company can prove a good reason for the higher pay.

GM is more than 60 percent-owned by the U.S. Treasury after a government-funded bankruptcy and reorganization in 2009. The U.S. government also holds a small stake in Chrysler, which is under management control of Italy's Fiat SpA.

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Submitted Mar 20, 2010 By: Mudsprings

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honda0105 Champion Author Tallahassee Posts:10,740 Points:629,450 Joined:Nov 2008	Message Posted: Mar 21, 2010 9:47:51 PM Ignore honda0105 Report Abuse nothing wrong about that. Need to do that with others, such as bankers and many other companies that got any bailout money.
Sneakers55 Champion Author Houston Posts:32,047 Points:1,295,435 Joined:Nov 2005	Message Posted: Mar 21, 2010 1:12:06 PM Ignore Sneakers55 Report Abuse coughlin wrote: >The shareholders of GM never, ever, ever, ever had the >opportunity. Shareholders of few, if any, corporations >have ANY say so over compensation. SAY ON PAY is so far mainly practiced in Europe. The only US company who does SAY ON PAY that I know of is AFLAC and I know of a batch of them! AFLAC is more of a Japanese company than a US company in the first place... they may not have many American vehicles in Japan but they have tons of American insurance! AFLAC has SAY ON PAY but they're the type of company that wouldn't need it that much: the founding family is in charge, and they don't pay themselves much. There seems to be a lot of demand for SAY ON PAY from shareholders. It's getting attention in Congress. >I am GLAD that Obama did it and wish that the ceiling >had been lower. They should have a simple rule: Take a bailout, the Named Executive Officers take a pay cut. The CEO's pay should go to $400,000. That's what the President gets. >Compensation that American CEO's receive is obscene. >It should be a ratio of 40-1 from the highest paid to >the lowest. Any particular reasoning for the 40:1 ratio? If they're going to set compensation for CEOs, let it be the same as the President of the United States receives with the exception that they don't fly on a Boeing VC-25 unless the President invites the aboard.
Amplion Champion Author Oregon Posts:1,526 Points:890,855 Joined:Sep 2005	Message Posted: Mar 21, 2010 3:35:37 AM Ignore Amplion Report Abuse Chairman BHO's comrades at work !!!
Night Owl Champion Author Toronto Posts:2,725 Points:834,090 Joined:Jul 2004	Message Posted: Mar 20, 2010 8:49:54 PM Ignore Night Owl Report Abuse Good news. Executive salaries and bonus pay has gotten absolutely ridiculous.
davmoo Champion Author Indiana Posts:1,090 Points:1,986,745 Joined:May 2004	Message Posted: Mar 20, 2010 8:22:56 PM Ignore davmoo Report Abuse >>The shareholders of GM never, ever, ever, ever had the opportunity. Shareholders of few, if any, corporations have ANY say so over compensation. Actually yes they do, although not directly. The shareholders elect the board of directors. If the directors award the company executives too much pay in the eyes of the stockholders, the stockholders can vote out the board and replace them with directors who do what they want. I'd also like to remind all the naysayers that the government is a shareholder of GM, and in fact is the largest shareholder of GM. It is not merely a case of the government says "lower pay"...its the holder of 60 percent of the company stock saying "lower the pay". As I said in an earlier post on this topic, if GM doesn't like it, I'm sure Uncle Sam would be more than happy to sell them back that 60 percent just as soon as GM ponies up the billions to do it. Don't like what the 60 percent shareholder says? Then buy them out. Welcome to capitalism. Talk is cheap, shares of stock cost money.
Bonanza Champion Author Boston Posts:6,229 Points:1,574,690 Joined:Jun 2004	Message Posted: Mar 20, 2010 8:07:25 PM Ignore Bonanza Report Abuse Too bad they can't control the bonuses that are going to the bankers and Wall Street.
coughlin Champion Author San Jose Posts:1,132 Points:297,350 Joined:Sep 2009	Message Posted: Mar 20, 2010 7:49:43 PM Ignore coughlin Report Abuse gas_too_high wrote: GM execs may be overpaid, but it should not be the government, but the shareholders, saying so. The shareholders of GM never, ever, ever, ever had the opportunity. Shareholders of few, if any, corporations have ANY say so over compensation. I am GLAD that Obama did it and wish that the ceiling had been lower. I also wish that he had done it with the Banks that got our money. I don't buy the argument that 'they'll leave for another company". Let 'em go then. Compensation that American CEO's receive is obscene. It should be a ratio of 40-1 from the highest paid to the lowest.
SpaceAce5 Veteran Author South Dakota Posts:300 Points:66,245 Joined:Feb 2010	Message Posted: Mar 20, 2010 5:36:16 PM Ignore SpaceAce5 Report Abuse start with a little off the top sounds good to me
OHMS Champion Author Orange County Posts:8,071 Points:910,710 Joined:May 2005	Message Posted: Mar 20, 2010 5:17:31 PM Ignore OHMS Report Abuse who trims the pay of the CZAR?
PathfinderSC Champion Author South Carolina Posts:4,559 Points:857,785 Joined:Mar 2008	Message Posted: Mar 20, 2010 5:16:32 PM Ignore PathfinderSC Report Abuse Gee all these Changes.
LanguageMan1 Champion Author Tampa Posts:5,963 Points:690,445 Joined:Apr 2008	Message Posted: Mar 20, 2010 3:59:37 PM Ignore LanguageMan1 Report Abuse To continue where I was cut-off from finishing below. what dealerships and to basically leave the companies alone instead of shipping more jobs out of the country and closing out more jobs as Obama and his gang have done. As far as I'm concerned, Obama and his gang is as bad as Bush and his and Clinton and his. They both shipped jobs out of this country along with our Congress.
gas_too_high Champion Author Columbus Posts:4,359 Points:992,450 Joined:Aug 2005	Message Posted: Mar 20, 2010 3:19:34 PM Ignore gas_too_high Report Abuse GM execs may be overpaid, but it should not be the government, but the shareholders, saying so. Oh that's right -- the government IS the shareholder of Government Motors. GTH
CPGas1815 Champion Author Michigan Posts:1,676 Points:245,970 Joined:Apr 2008	Message Posted: Mar 20, 2010 3:02:10 PM Ignore CPGas1815 Report Abuse The outrageous and obscenely large salaries of corporate executives should be slashed to $1.00 per day. Many of us are surviving on not much more than a buck per day. Only then will these titans of corporate corruption realize some of the pain that they have inflicted upon every one of their constomers.
POLELANE Champion Author Ohio Posts:6,312 Points:718,345 Joined:Mar 2008	Message Posted: Mar 20, 2010 3:02:06 PM Ignore POLELANE Report Abuse I didn't notice what the pay CZAR gets for her hard work; anybody see it?
LanguageMan1 Champion Author Tampa Posts:5,963 Points:690,445 Joined:Apr 2008	Message Posted: Mar 20, 2010 3:00:37 PM Ignore LanguageMan1 Report Abuse I don't mind them limiting their base pay as they're going to get plenty of spiffs, bonuses, stock options, etc. I take all the extra stuff into consideration. I don't want them [the government] to get involved with the day to day operations, the salaries and pay scales for the rest of the worker (though they ALREADY HAVE don so with the assembly line workers) or for the designs of the vehicles, etc. The government doesn't do a good enough job as it is with it's own day to day functions. AND, I want them out of the picture deciding about who gets
jwalkerh Champion Author Louisiana Posts:2,098 Points:562,295 Joined:Oct 2008	Message Posted: Mar 20, 2010 2:53:55 PM Ignore jwalkerh Report Abuse When will GM start repaying those loans back?
batloverNM Champion Author Albuquerque Posts:1,139 Points:753,660 Joined:Oct 2007	Message Posted: Mar 20, 2010 2:53:36 PM Ignore batloverNM Report Abuse How many of us little people could be employed if the big execs weren't so damn greedy???
Cruiser340 Champion Author Grand Rapids Posts:7,520 Points:1,815,085 Joined:May 2004	Message Posted: Mar 20, 2010 2:23:36 PM Ignore Cruiser340 Report Abuse at least the auto CEO's are in charge of money producing companies, unlike congress who just spends our money and gives us nothing for it.
04tang Champion Author Ohio Posts:1,787 Points:388,210 Joined:Jul 2006	Message Posted: Mar 20, 2010 2:14:51 PM Ignore 04tang Report Abuse I think half a mil is too damn much. They haven't showed me they earned anything yet.
badbonita Champion Author Syracuse Posts:1,198 Points:374,520 Joined:Jul 2008	Message Posted: Mar 20, 2010 2:14:23 PM Ignore badbonita Report Abuse IMO these executives don't deserve multi-million dollar paychecks and bonuses since all they did was nearly drive their companies into bankruptcy.
Patch44 Champion Author Buffalo Posts:3,758 Points:899,835 Joined:Oct 2007	Message Posted: Mar 20, 2010 2:14:22 PM Ignore Patch44 Report Abuse Will these cuts help reduce the price of gas? I doubt it!
rimpyCA Champion Author Los Angeles Posts:1,550 Points:324,450 Joined:Aug 2009	Message Posted: Mar 20, 2010 2:13:32 PM Ignore rimpyCA Report Abuse go ahead do it fast
twowheel Champion Author Austin Posts:8,482 Points:1,922,265 Joined:Oct 2004	Message Posted: Mar 20, 2010 2:09:30 PM Ignore twowheel Report Abuse Do you want to buy a car designed by the best engineer or the cheapest engineer?
computernut2008 Champion Author Ohio Posts:1,655 Points:399,470 Joined:Oct 2008	Message Posted: Mar 20, 2010 2:09:06 PM Ignore computernut2008 Report Abuse Get rid if these Czars
CorvairHaven Veteran Author Cleveland Posts:349 Points:507,950 Joined:Sep 2008	Message Posted: Mar 20, 2010 2:06:38 PM Ignore CorvairHaven Report Abuse More political "remedies"...
SUV2009 Champion Author Orlando Posts:1,117 Points:263,140 Joined:Oct 2009	Message Posted: Mar 20, 2010 2:02:06 PM Ignore SUV2009 Report Abuse Great maybe they will figure out how to pay us back.
nurdco Champion Author Colorado Springs Posts:3,815 Points:716,105 Joined:Apr 2008	Message Posted: Mar 20, 2010 1:57:39 PM Ignore nurdco Report Abuse WHERE's the Taxpayer Discounts???
texasvet Champion Author Texas Posts:1,401 Points:160,785 Joined:Jul 2009	Message Posted: Mar 20, 2010 1:53:37 PM Ignore texasvet Report Abuse This has nothing to do with gas prices. Funny how articles like this stay around while articles actually having to do with oil supplies (like, for instance, Russians drilling off of Florida) disappear.
humblepie Champion Author Toledo Posts:7,979 Points:1,395,180 Joined:Mar 2006	Message Posted: Mar 20, 2010 1:49:46 PM Ignore humblepie Report Abuse of all obama's 116 czars this one has the best job, even better then the toilet paper czar
Jo120 Champion Author Arizona Posts:3,449 Points:1,311,030 Joined:Mar 2005	Message Posted: Mar 20, 2010 1:46:19 PM Ignore Jo120 Report Abuse If that's what happens when Obama takes over in General Motors. We can only guess what will happen with Health Care?
pgriff1 Champion Author New Orleans Posts:4,022 Points:1,229,910 Joined:May 2004	Message Posted: Mar 20, 2010 1:40:16 PM Ignore pgriff1 Report Abuse so how much does the Czar make?
Bleeder Champion Author Virginia Posts:3,916 Points:815,780 Joined:Jan 2008	Message Posted: Mar 20, 2010 1:35:46 PM Ignore Bleeder Report Abuse They should all have to prove they have earned their outrageous amount of salaries.
runway12 Champion Author Tacoma Posts:1,108 Points:259,615 Joined:Aug 2008	Message Posted: Mar 20, 2010 1:32:10 PM Ignore runway12 Report Abuse Is this a model for showing that if you actually work or do a good job than you can make more income? Too bad Wall Street doesn't have this notion.
skybiker Champion Author South Carolina Posts:3,335 Points:662,105 Joined:Jul 2008	Message Posted: Mar 20, 2010 1:31:09 PM Ignore skybiker Report Abuse Where in the Constitution does it say Government has this authority????
JCS319 Champion Author Tacoma Posts:10,421 Points:1,563,915 Joined:Dec 2005	Message Posted: Mar 20, 2010 1:28:25 PM Ignore JCS319 Report Abuse Best news coming from the "czar" that I've heard about. It's our money and there isn't any reason to pay the execs of a failed company outrageous salaries.
LittleBlueCarNY Champion Author Albany Posts:1,144 Points:551,670 Joined:Apr 2008	Message Posted: Mar 20, 2010 1:24:02 PM Ignore LittleBlueCarNY Report Abuse Throw out all the czars...and the people who appointed them.
DrivingFool2 Champion Author Wisconsin Posts:3,476 Points:646,815 Joined:Apr 2005	Message Posted: Mar 20, 2010 1:22:51 PM Ignore DrivingFool2 Report Abuse Too bad they can't control the bonuses that are going to the bankers and Wall Street.
AcuraTSX Champion Author Ohio Posts:1,166 Points:1,264,120 Joined:Dec 2005	Message Posted: Mar 20, 2010 1:20:01 PM Ignore AcuraTSX Report Abuse Who sets the salary for the pay czar? Congress? Congress does not even get to approve the czars Obama appoints. More government control. Just what most Americans do NOT want!
cpl11787 All-Star Author Minnesota Posts:630 Points:123,275 Joined:Jan 2010	Message Posted: Mar 20, 2010 1:19:53 PM Ignore cpl11787 Report Abuse cool.
serrog Champion Author Nova Scotia Posts:1,928 Points:620,280 Joined:Oct 2008	Message Posted: Mar 20, 2010 1:19:17 PM Ignore serrog Report Abuse good
nigelb Champion Author Virginia Posts:3,489 Points:526,475 Joined:Feb 2008	Message Posted: Mar 20, 2010 1:18:36 PM Ignore nigelb Report Abuse About time! And to those commenting about "Government Motors" - the government did not want to run GM, had they not taken ownership of 60%, GM would not exist causing thousands more to loose jobs.
regasaz Champion Author Phoenix Posts:1,160 Points:347,595 Joined:Dec 2006	Message Posted: Mar 20, 2010 1:14:37 PM Ignore regasaz Report Abuse What the Hey?? I believe Obama has more Czars than Russia. Where do their dded salaries come from - us the taxpayers.
DellDude2 Champion Author Nashville Posts:3,984 Points:1,150,535 Joined:Aug 2005	Message Posted: Mar 20, 2010 1:14:13 PM Ignore DellDude2 Report Abuse Newsflash: The official "Pay Czar" Logo is the Sickle and Hammer.
pulpwood Champion Author Mississippi Posts:4,040 Points:1,192,015 Joined:Sep 2006	Message Posted: Mar 20, 2010 1:02:38 PM Ignore pulpwood Report Abuse Yes you are correct spunky4443!
hybridaholic Champion Author Wisconsin Posts:3,338 Points:591,935 Joined:Dec 2008	Message Posted: Mar 20, 2010 1:01:41 PM Ignore hybridaholic Report Abuse Agree with you Jcurley
jcurley Champion Author California Posts:3,397 Points:835,965 Joined:Dec 2007	Message Posted: Mar 20, 2010 12:59:17 PM Ignore jcurley Report Abuse But not the financial industry! The Bush and Obama administrations, and the Senate, made sure there was no language that would permit oversight or restrict salaries and bonuses, in the TARP funds and other bailout handouts to the banks. Fire (most of) the US Senate and start over! Side note: Every public corporation that I know, has a compensation committee that "sets" the executive salaries and bonuses according to other executives. And not one says the the executive should be paid at under 50% of the average. They are all at 50% and higher. Which means that executive salaries are guaranteed to ratchet up every year -- it's in their contracts.
Dennisjk Champion Author Detroit Posts:2,604 Points:1,035,765 Joined:Apr 2006	Message Posted: Mar 20, 2010 12:57:05 PM Ignore Dennisjk Report Abuse We seem to have a lot of czars now, don't we.
AnObserver Champion Author New Jersey Posts:4,270 Points:1,418,870 Joined:Sep 2005	Message Posted: Mar 20, 2010 12:56:26 PM Ignore AnObserver Report Abuse Based on the performance of the company, this move seems very justified. Too bad Feinberg doen't have the same jurisdiction over the Wall Street investment and banking firms.
Road-Runner Champion Author Denver Posts:3,601 Points:1,223,875 Joined:May 2004	Message Posted: Mar 20, 2010 12:55:12 PM Ignore Road-Runner Report Abuse "Czar" is simply a term which has been attached by the media to certain agency heads and others in the federal government. "Energy Czar" has been used to refer to the head of the federal energy department. In reality it has no validity at all. In much the same way some of us like to refer to health insurance company executives as "Robber Barons".
Tamas2evil Champion Author Pennsylvania Posts:4,415 Points:783,000 Joined:Sep 2006	Message Posted: Mar 20, 2010 12:55:06 PM Ignore Tamas2evil Report Abuse They all should have pay checks less than...$500k