• Feb 18, 2009
The president decreed that CEOs running banks that received TARP funds couldn't be paid more than $500,000 each year. Chrysler isn't a bank, yet it has received TARP funds, and its CEO, Bob Nardelli, is well under the $500,000. Or at least, he might be. During recent Congressional hearings Nardelli was asked if he'd take a pay cut to $1 a year, and he said he would; the only thing is, he was already making $1 a year.
When Nardelli joined Chrysler in 2007, he signed on for an annual paycheck of $1. The question is, is that all he's making? Neither Chrysler nor parent company Cerberus will say, and as a private company, Cerberus isn't compelled to. On the other side of the automaker CEO coin, it has been revealed that GM CEO Rick Wagoner is only getting a dollar and no bonus on top of that.

The issue certain people want addressed is whether taxpayer funds are being vacuumed into CEO bank accounts. In Chrysler's case it's not so clear how much Nardelli makes nor where any amount more than $1 is coming from -- Cerberus has various interests outside of Chrysler which could fund any theoretical bonus Nardelli gets.

[Source: ABC News]


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  • 15 Comments
      • 5 Years Ago
      Define to much. Is Ryan Howard overpaid at 54 million? Who are you to decide what the market will bare?

      A CEO paid $1 in stock options is the correct way to play the game. They are encouraged to increase the value of their company. So that the stocks they are paid are worth more. Its as simple as that. And it goes back to quite a few CEO's, Steve Jobs is on this list, who do the same way.

      Ok should they get millions of shares? Thats up for debate. But remember in a free market its what the market will bare. Not artificial caps imposed by us.

      UNLESS....

      You are given money by the US Government and you arent ousted because you created the mess in the first place. In which case we get to dictate what you are paid since we, the taxpayer, is now a stockholder
        • 5 Years Ago
        Unfortunately, that kind of incentive structure often shifts focus to short term gains at the expense of long term health.
      • 5 Years Ago
      ...and the answer is: too much.
      • 5 Years Ago
      The guy left Home Depot with $200 million, he doesn't need any money. When he started at Chrysler it was because he "wanted to do good and clear his name of the HD fiasco"..and that he would work for 1 dollar.

      Before the bad CEO comments start, he was very good at General Electric (Manufacturing) and implemented their "six stigma" management structure to Home Depot (Retail) when he arrived there, and was rewarded with increasing revenue from 40 Billion to 85 Billion in just 5 years.

        • 5 Years Ago
        Don't mean to nitpick, but it's six sigma.
        I'd hate for somebody to implement six stigma. lol.
        • 5 Years Ago
        That's precisely the problem ... great short term results, disastrous long term results that Home Depot was trying to recover from before the economic downturn. But, hey, you don't get the multimillion bonuses for strengthening the company for the long term.

        BTW, The Church of Six Sigma ain't all it's cracked up to be.
      • 5 Years Ago
      When is the public at large and media going to start questioning how much professional athletes make... not soon enough.
      • 5 Years Ago
      $5 bucks says he's really making $1 on salary.... but taking over $500,000 in distributions lol.
      • 5 Years Ago
      Who cares? Wagoner etc have near hundreds of millions in stock, cash and other assets since a while ago (more a while ago). What they're choosing to make now is entirely inconsequential. (Unless it's a substantially over 500k, which would be bad.)
      • 5 Years Ago
      The point was the caption, thats all, and thats awesome
        • 5 Years Ago
        "feel sorry for Cerberus. It'll cost 'em a fortune in fudge."

        cookie for the reference...
      • 5 Years Ago
      So.. Uhh... In all honesty, what was the point of this article?

      To sum the whole article up...

      He makes $1, there is a chance he makes more.. but.. we have no proof.. so.. end of story.. He still makes $1 for all we know..
        • 5 Years Ago
        Or, according to the article, he may not be..

        • 5 Years Ago
        Have to agree, this article is written as if this is some kind of journalistic coup, makes Autoblog look very naive.
        • 5 Years Ago
        The point is this guy is probably playing everybody for fools and that he's probably still getting compensated plenty through other technicalities.
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