- Apr 20, 2009
REPORT: Chrysler Financial turns down government loan over executive pay limit stipulations
Another source refuted that, saying there was no way executives would turn down a loan if it would help the company survive. Nevertheless, CF's response to the story seems a little disingenuous. The company said "Executives have not been presented with any new demands with regard to executive compensation." That's straightforward enough. But then it adds, "As a TARP recipient we remain in full compliance with current executive compensation requirements."
When Chrysler Financial received its TARP loans there were no stipulations at all about executive compensation -- they hadn't been drafted yet. So yes, it is "in full compliance" with the current requirements as it stood when it borrowed the money. Then CF said it didn't any more TARP funds, however, it is going to borrow money at a higher interest rate from a group of banks. Which means it still wants money, just not the government's money, and it's willing to pay more for it. Sounds curious, no? Hat tip to Roger
[Source: Washington Post]