Search Tools


Tuesday, December 2, 2008

A ONE Dollar a year salary - so what????

Automaker execs (from three companies) are now saying they will accept a $1 per year salary. So what? Big Deal! Who really cares?

Executives don't just get a salary - they get a big financial plan. Their financial compensation includes salary, bonuses, stock options, housing allowances, private planes, expense plans for food, vacations, etc.... Their salary is usually one of the *smaller* pieces of the total compensation package. So - they give it up for a year or so. I'll ask it again: "Who cares?" Not me. They'll still be getting plenty of money out of this deal if it goes through.

They want taxpayer money, but where is their responsibility for where their company currently is? It's nowhere -that's where. Sure - I understand they are not responsible for where the economy is right now, but a healthy company should be able to weather some economic downturns. So far - Toyota is. So far - Volkswagen is. Neither one of THEM is at their government's door asking for a handout. Other automobile companies made good decisions in the past 10 years and aren't in the position that GM, Chrysler and Ford are in. I think the CEO's of the "big three" are part of the problem and should not be part of the solution.

I say that if these automakers really need taxpayer money in order to survive, the company's stockholders should expect no less than a resignation from their top people.