• Mar 2, 2009
The recent string of government bailouts has placed a 50,000-watt spotlight on executive pay. Executives from Detroit automakers have already cut their pay to show the public and their own workforces that they're sacrificing for the greater good. There hasn't been much focus, however, on finance arm executives, though there likely will be after Automotive News learned that GMAC CEO Alvaro de Molina was paid $11.6 million in 2008. Molina's 2008 windfall comes one year after he pulled in nearly $5 million in 2007; an amazing amount of money considering he started at GMAC in September of that year.
The breakdown of what Molina earned in 2008 is actually $1.2 million in salary, $5.81 million in stocks and $4.8 million of "other" compensation, offset by stock options that pulled the grand total down by $194,000. Included in the $4.8 million "other" compensation is $2.26 million in usage of a company jet, a privilege that has since been revoked.

If your stomach is turning at the thought of a finance CEO making $11.6 million when his company is losing billions on its mortgage and automotive finance operations, you're not alone. We're guessing that Molina's 2009 will be significantly less lucrative than 2008, but likely still more than most of us feel any CEO deserves.

[Source: Automotive News subs req'd]


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  • 24 Comments
      • 5 Years Ago
      Why is Sea Urchin so obsessed with Wagoner?
        • 5 Years Ago
        Daddy issues.
        • 5 Years Ago
        @Sea Urchin

        Read "Why GM Matters" to get an understanding of what Rick Wagoner is about and how he manages.

        As for this GMAC thing - thank Cerberus for not putting a cap on this guy. Another black eye in bad times for a group getting government money. You would think Cerberus would have learned or at least looked into who is getting paid what knowing a spot light is on the top brass.
        • 5 Years Ago
        Perhaps because some live such a miserable existance they live through bringing down others.
        • 5 Years Ago
        J. Crew, the company is dead. How does he manage?
      • 5 Years Ago
      I keep hearing people claiming that the company board of directors can vote them out if they don't perform well, what a joke! The boards are full of a bunch of fat cats that don't really care as long as they get their glutinous piece of the pie. The last time a CEO was voted out it took the stockholders too and he's now the CEO of Chrysler, probably making more than he made while he drove Home Depot's stock down during his tenure. If stockholders really had some voting power anymore this current fiasco might be different.
      • 5 Years Ago
      Poor guy... having his private jet usage revoked. Must be killing him.
      • 5 Years Ago
      As others have said, what a CEO is paid is between him/her and the board of directors. However, when they have to go on welfare, err, government assistance, err bailout, then what the CEO and every other employee earns is now my business.

      I don't have any loans through GMAC nor do I have any money invested with them, therefore what they paid their CEO had no impact on me. However, now that they have accepted government money, as a tax payer, it all of a sudden becomes my business.

      If it were up to me, the taxpayer check to the company would be excanged for a letter of resignation from all of the top layer of company management. You all ruined the company, the taxpayers are not the board of directors and the board will now accept your resignation, thank you. Oh, you don't want to resign, then you do not want my money very badly do you?

      • 5 Years Ago
      I just can't believe all the whingeing about government bailouts of the auto industry, when AIG loses $62 billion in 3 months and has the nerve to ask for yet more cash.

      When are we going to stop bailing out those assh0les on Wall Street?

      My guess is that it will be when the printing press/Federal Reserve runs out of paper...
      • 5 Years Ago
      That nice. What's AIG's CEO pulling these days.

      Seems that the govt has given AIG more funds and says, "Hey, if you need more, just call...not like we're going to require some type of re-org plan for the extra cash."

      Sickening....
      • 5 Years Ago
      Hey, the guy earned it. Just like Wagoner did.................Jobs well done.

      Interestingly enough, Autoblog never brings up salaries of Car executives, i wonder why.
      • 5 Years Ago
      Instead of being upset at these companies for paying their CEOs so much when they are getting public money, we should be mad at our incompetent politicians for giving them public money.
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