• Jul 15, 2009
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]


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  • 40 Comments
      • 5 Years Ago
      When new contracts are developed, then and only then, can you have in writing if the company loses money, so do the Top Ranking Executives.

      Period.
      • 5 Years Ago
      it's like an advertisement
      New GM name, same old GM tricks!
      • 5 Years Ago
      Well it was GM that signed the contract, so no point in getting mad at Wagoner now.
      • 5 Years Ago
      F*** this noise, only in America would something like this happen.


      I've become disenfranchised.
        • 5 Years Ago
        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.

        • 5 Years Ago
        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 ;-).
        • 5 Years Ago
        meh Obama gets a better deal its like 200k a year for the rest of his life
        • 5 Years Ago
        @imirk

        Same deal GW is getting so quit your bitching.
      • 5 Years Ago
      This is pretty much a given w/ all big CEOs.
      • 5 Years Ago
      He can have a comfortable retirement.
      • 5 Years Ago
      It's not really a golden parachute if the president forces you out of your job.
      • 5 Years Ago
      Let's see... He is 56 years old now (Wikipedia lists his birthday a 2/9/53). Let's say he lives until he is 85... That's 29 years. 8.2 million divided by 29 is 282,758. Add in the 74,030 per year and it's 356,788 per year. Although it is more than most Americans earn per year, it really isn't that much...
        • 5 Years Ago

        I'm sorry, I'm not reading well today......'it's really not that much????'

        A third of a million dollars a year isn't really that much???

        Okay.
        • 5 Years Ago
        That is quite a lot for doing nothing.
      • 5 Years Ago
      Lay off Wagoner; he didn't create the unions that destroyed GM.
      • 5 Years Ago
      Maybe he can run for public office now that he is out of a job. Senator Wagoner from Michigan?
        Willie
        • 5 Years Ago
        After the terrible job he did running Old GM, I definitely would not want him as my politician.
      • 5 Years Ago
      We should be outraged. He was FIRED because he did a crappy job. If it was you or I we would get squat. That's what is wrong, Home Depot gave Bob Nardelli a huge golden parachute for trashing Home Depots fortunes, all the employee's he got rid of so he could turn a quick profit got nothing.

      If you do well for a company then for sure you deserve to be rewarded, I'd say Bob Lutz was worth every penny GM paid him. But if you do a bad job and are fired then regardless of who you are you should be treated the same. The janitor who is more in need of support gets nothing, the boss gets to retire, that's not right. I could have done a better job than Rick and it would have cost the less to let me go.
        • 5 Years Ago
        Yes you get your holiday paid out, if your lucky you might have 4 weeks worth. The severance is likely to be a week for each year of service although I don't know if that's a legal mandate. Any 401k you would take with you and any pension would have its benefits frozen. I would get the same.

        But in comparison that's nothing compared to $70k a year for LIFE and amount that's considerably above the average. He now has medical benefits for LIFE which in itself carries a huge value (check out the cost of COBRA). And all from a company went bankrupt and that is taking away the very same from there employee's and retiree's. People that had not failed at there jobs and had budgeted there lifestyle on those benefits.

        Yes, Rick should get severance but it should have some relationship to the pay outs that the rest of the companies employees would get.
      • 5 Years Ago
      Not surprised in the least. I am betting 3:1 odds that GM collapses completely in the next 3-5 years

      I don't think anyone will want to buy their crap

      They are not out of the woods yet.
        • 5 Years Ago
        Wagoner was the one who drove GM into the ground, now those who are left over from the "Old GM" crew will help bury the products they have left with more poorly designed and substandard quality products.

        To predict the future of GM, just follow the demise of the British auto industry. Once the government stepped in to form British Leyland, the quality sufferred, brands were dumped, and only a fragment of what once was managed to survive.

        I give the "New GM" another 18 months max. They won't make it 3 years, not at the rate they are going now which is headed for the wall!
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