REPORT: Wagoner gets $8.2M severance + $74,030 annually w/benefits... for life
When Rick Wagoner was forced out of his position as the CEO of General Motors last March, he left with a severance plan that included $22 million paid out over the course of a few years, plus a yearly pension. Just a few months later, The Los Angeles Times is reporting that Mr. Wagoner has worked out a deal with his ex-employer that will "only" pay out $8.2 million, plus $74,030 per year for life, along with health and life insurance plans. Wagoner's retirement becomes official on August 1, at which time he can begin reaping the benefits of his golden parachute.
Wagoner's severance, while greatly reduced, is still worth more money than most Americans will earn in their lifetime, and it will doubtlessly prompt some to once again question big payouts to ex-executives at federally bailed out companies. We wonder if now is a bad time to hit up Wagoner for a low interest loan to help us get into a new Camaro...
[Source: The Los Angeles Times | Image: Bill Pugliano/Getty]
Reader Comments (Page 1 of 3)
dallasward007 8:40AM (7/15/2009)
Shouldn't they deny this because it's a cost associated with "Old GM"?
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The Other Bob 9:39AM (7/15/2009)
Thats what I was thinking.
guerro 11:36AM (7/15/2009)
What ever happened to just out-right firing someone's ass ?? Donald Trump style, "Yer Fired! Now get out of my office." WTF ?
Jei 12:51PM (7/15/2009)
Remember, that these CEO's have iron-clad contracts with the large corporations that, in most cases, indicate compensation for just about condition that leads to a CEO being "replaced, demoted, fired, let go, etc".
Remember, Rick was "replaced" as a condition of the structured govt-lead bankruptcy bailout. He didn't, specifically, do anything wrong, except be the sacrificial lamb at the helm when the company was at its wits-end. The board of directors (at that time) was confident in Rick Wagoner, but to save the company, he was fingered at the guy to take the big fall.
sbessette91 1:10PM (7/15/2009)
No, it seems fair to me....it's the same deal the Union workers get. Kill a company and get benefits for life.
=)
ryan 8:44AM (7/15/2009)
F*** this noise, only in America would something like this happen.
I've become disenfranchised.
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Cougs 10:20AM (7/15/2009)
Don't worry...with inflation from the massive government spending that is going on he will be able to maybe purchase 2 pizzas a year with this ;-).
imirk 11:37AM (7/15/2009)
meh Obama gets a better deal its like 200k a year for the rest of his life
Mr.Oak 12:47PM (7/15/2009)
Cougs: Give it a rest. First worry about how we are going to pay for that dumber than dog-poo war in Iraq. The one that you right wingers think, that not talking about will make it go away. That my friend will cost us waaaaaay more than health care.
tuna 1:43PM (7/15/2009)
@imirk
Same deal GW is getting so quit your bitching.
Cougs 1:46PM (7/15/2009)
@ Mr. Oak
I'm not a right-winger, I'm a libertarian that thinks that all of this is a crock; by simply assuming that I disagree with left doesn't mean that I suddenly agree with the right. It all costs money; a silly war, an idealistic view on healthcare, TARP, etc. I don't care about paying for it, it shouldn't have been spent in the first place; now that it has, it should be undone as quickly as possible before more occurs. Though, to counter-point your statement, the Iraq War can have the spigot turned off whenever (unlike any form of public healthcare) but the vaunted Commander in Chief hasn't done it yet (though that is one of only two things he actually does have control over according to our Constitution).
As pertains to my comment, this will drive inflation, either through direct increases in monetary supply or through devaluation of our currency compared to other countries because of decreased purchase power on the world scale. You cannot pick and choose which of these is right or wrong - they are all outside of the enumerated powers of Congress and should be deleted from our "budget" as soon as possible since they are technically without legal precedent to stand on (well except for the Iraq War, which, if defined as a war and agreed to by Congress, is within the control of the POTUS to allocate funds).
Ultimately, its all bull...but the joke still remains that Wagoner will have less to work with as inflation begins to rise.
JayC 8:43AM (7/15/2009)
Well it was GM that signed the contract, so no point in getting mad at Wagoner now.
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wood 8:50AM (7/15/2009)
The caption for this photo should read: "Now remember, everyone, I want to see at least THIS MUCH gap between every body panel and piece of interior. If I can't close the door of my Escalade and stash a dead body between the door card and dash, you're fired!"
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Chris 8:50AM (7/15/2009)
Probably the payoff for going away quietly. In other words, Obama and Corp had to offer a carrot and this is it. Of course they will allow the press to vilify GM and Waggoner for it
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Serge 8:53AM (7/15/2009)
The press can vilify me all they want if I can get a free 8.2million and $74,030 annually for life...
Jei 12:58PM (7/15/2009)
Right. If it were any other organization besides the govt that forced Wagoner out, he'd got way more in compensation. He'd probably be in a position to threaten to sue and quickly settle for some un-Godly amount.
If GM shares were still being traded publicly, Wagoner might have gotten millions of shares in stock options that he could convert in a few years.
DesiAuto 8:51AM (7/15/2009)
I am so glad he was fired. Everybody blame gov to be inefficient and corrupt. Rick proved year in year our that businesses are no better.
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jpm100 9:15AM (7/15/2009)
Because he followed the Enron legislation and funded a bunch of decades old unfunded obligations depleting GM's capital so they couldn't weather this recession?
Or, because he built SUVs?
Cougs 10:14AM (7/15/2009)
"businesses are not better" is a pretty broad statement considering there are thousands of businesses that, while hurt by the recession, are profitable and make sound business decisions. Don't let a few bad apples hurt your opinion of the only system in the world that produces winners everday vs. the government that produces a winner once every century.
Cougs 10:17AM (7/15/2009)
And yes, government is corrupt and inefficient. They are the only "business" the runs deficits year in and out, decade after decade, and are still around...any business that tried the same while removing funds from its stakeholders against their will (through taxes) would be dissolved and their board tried for criminal negligence.