• Dec 14th 2009 at 8:27AM
  • 52
It's official: pay czar Kenneth Feinberg's executive compensation rules for companies yet to return their bailout funds means a cap of $500K for second-tier executives. Importantly, that number represents the total compensation allowed, but only 45 percent of it -- $225,000, can be in cold, hard ducats. Stock remuneration must be held or paid out over at least two years, and extracurricular perks like country club memberships and private jet escapades can be valued at no more than $25,000.

Regarding General Motors, to lure the kind of executive the company seeks it will probably need a bit more flexibility with pay than the rules previously enforced on it by the pay committee. Feinberg said he will look at GM's compensation proposal when a suitor is located. It would be nigh on impossible to lure that candidate with the come-on, "Fix everything, here's a million bucks now, you'll get some Scooby Snacks in 2013, let us know when you're done, kthxbai."

Feinberg appeared to refine his pay re-examination statement, though, citing a case where GM brings someone in "laterally," not simply chooses from among the ranks. Like him, we all know that "It is vitally important that GM, under the law, be competitive and be able to compete in the automobile marketplace," especially if we want to get any more of that $30 billion back.

[Source: Automotive News - sub. req. | Image: Win McNamee/Getty]


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    • 1 Second Ago
  • 52 Comments
      • 5 Years Ago
      This is the perfect way to retain quality leadership! Pay them well under market value! Brilliant idea! I mean it's not like they can just quit and go somewhere else where they'll be paid what they're worth right?
      • 5 Years Ago
      Jeez, who knew that top tier talent would want top tier compensation?

      "Hey guy, wanna come run a company and make relative peanuts when you could be making a fat mint elsewhere? No? Hmmmmm....this isn't working like I planned."

      Foresight fail.
      • 5 Years Ago
      Good news, here.
      • 5 Years Ago
      Have they found any potential Candidates for the job yet?
      • 5 Years Ago
      Wow! only an idiot is going to take that job for that money. How is that going to help them out of this mess.
      • 5 Years Ago
      "my penis is this big"
      • 5 Years Ago
      hate to be a stickler-on the format /web use front - a scrolling window for the snippet section somewhat defeats the snipped section's at a glance function.

      if this is only my browser then i apologize (firefox at 1280x1024)
        • 5 Years Ago
        "yeah, it's abooooout that big"
      • 5 Years Ago
      I'll take the job for that much money. Looking at previous CEO's the intelligence level obviously is not so high. :D

      Seriously though they need good leadership but at the same time they need someone that loves the product believes in the product and wishes the product to survive. I don't want a guy in there who used to run a damn phone company, I want a guy who's car collection and passion rivals that of Jay Leno if you will. I doubt it will happen though they'll get some CEO that ran Home Depot........ whoops.
      • 5 Years Ago
      Good luck finding one for that price. I think that CxO pay is out of control, but turning GM around demands good leadership. Only a philanthropist would accept that kind of salary without additional incentives.
        • 5 Years Ago
        Nonsense! Why did Lee Iacocca work for $1.00 while Chrysler recovered (& paid back gov. loans)? Because he knew he would make much more from good PR surrounding his leadership in a corporation's COMEBACK!!!

        Yes, Iacocca got stock options & future salary (but it was 2-3 million not 20-30 seen today) but he got book deals & other $$$ from the ability to grab respect of the public as a hard working & SUCCESSFUL businessman.

        There are plenty of modern executives that would risk low pay to prove their ability. Fix the problem & you cash in later. No different than a MLB pitcher in the last year of his rookie contract who wins 20 games. His new contract will skyrocket!!!
        • 5 Years Ago
        Poopy, I agreed with you until you dissed Obama.
        • 5 Years Ago
        Oh I see. The classic "I can't be racist because I am black" argument. IT HOLDS NO WATER.
        • 5 Years Ago
        The reality is that there are many excellent managers and CEOs in smaller businesses that aren't making more than $500,000 a year. What GM won't be able to do is a attract a high-profile CEO. Also remember that this search is global... Outside the US, outrageous CEO salaries aren't common. $500,000 would be a huge salary for some of them.
      • 5 Years Ago
      Well, I agree for someone who will be running a multi-billion dollar company, I think he should be paid at the most maybe a million or so, more if he produces results and brings the company back to profitability and can enforce the team members to make quality products that people want to buy. By team members I mean management- engineering-production workers, etc...everyone working for the common good. Rick Wagoner was making over 10 million dollars a year while this company was loosing money profusely, and board members still payed him even though the company was headed for bankruptcy.
      matthew
      • 5 Years Ago
      Why do we have Czars for anything in the USA? I didn't think we were living in Soviet Russia!

      The very notion should be appalling to all Americans. GM should be dissolved, and the CEO's should be penniless on the street, along with their union mob bosses.

      Give the tax money back while you're at it.

      Oh I forgot, we reward failure and punish success in the USSA(United Socialist States of America)!
      • 5 Years Ago
      It is pretty easy to read the comments and determine which of the commentators actually make money and those who are on the also ran list.
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