Last week, Chrysler was able to pay off its remaining $560 million in government debt. That's big news for Team Pentastar for many reasons, including reduced interest payments and increased control over its own future. Another, less publicized reward is that Chrysler no longer is required to adhere to the government's strict $500,000 executive pay cap, but that doesn't mean company brass can expect the fat checks to come rolling in.

Automotive News reports that Chrysler CEO Sergio Marchionne will continue to keep a tight rein on executive pay. The outspoken chief executive reportedly said during a conference call that any thoughts of "distributing cash indiscriminately are probably misplaced." Having said that, Marchionne also adds that Chrysler intends to remain competitive with regards to wages, yet restraint will continue to be used.

While Marchionne is downplaying the fact that Chrysler no longer has a $500,000 executive pay cap, we're guessing that the automaker's top management talent is thrilled about the possibility of future pay hikes.


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  • 23 Comments
      kevsflanagan
      • 3 Years Ago
      Hopefully Marchionne will stick to his guns and will have a "Show me growth and I'll show you pay" kinda style in terms of pay for the CEO's.
      ExoPlanet
      • 3 Years Ago
      And Marchionne only got paid $1.00 for fixing Chrysler. He has stocks but those are worthless until they take the house public.
      • 3 Years Ago
      [blocked]
        ACSRHS
        • 3 Years Ago
        Wow a lot of you have girlfriends with that stupid Panasonic huh... I guess they always arrive tomorrow as well. Stop spamming fool.
      NipponEngine
      • 3 Years Ago
      hey hey, they need that extra $$ to pay for rehab for their factory employees
      Dennis Baskov
      • 3 Years Ago
      As long as they don't get payed more than they deserve when the company is going bankrupt/poorly. There should be a law for execs stating that you get payed for your performance, and if the company is doing bad in the market, then you obviously deserve to get payed equivalent to the rhythm of the performance of the company. So there shouldn't be any jet planes or big ass checks or bonuses being contributed to them when things turn bad fir the company.
        Sabyrne88
        • 3 Years Ago
        @Dennis Baskov
        I couldn't disagree with you more. Do you really want the government to dictate the pay to executives of private companies? I mean think about that for a moment. The federal government would be telling a company what it can and cannot pay someone... that's absurd. Who would make the decision on what constituted "good performance?" Would it be net/gross profits? Net/gross income? Sales increases? Dividends?... Where would the special interest groups get involved, bending the laws to their (most likely the executives) will? Once a law gets produced the incentives the law creates would create disastrous distortions in private companies as executives focused on the metrics that meant they were "performing well," and dictated what they could get paid. I agree that over paying for a poorly performing CEO is bad for a company and for the US, but that should be left to the Board of Directors and the Stockholders, not to the federal government.
          ksrcm
          • 3 Years Ago
          @Sabyrne88
          Well, Sabryne88, the problem is when such a company goes belly up, then Government needs to step in because they are "too big to fail". I say, if they are too big to fail, they get regulated by Government. If they don't like it, they can split themselves into smaller companies. Errors/stupidity/incompetence of a single person should not be allowed to influence the lives of millions.
          Sabyrne88
          • 3 Years Ago
          @Sabyrne88
          If the government was perfect then maybe... mayybeeee the government could regulate executive pay without messing up private businesses, but the government is not perfect, not nearly. The major problem exists in the grey area that would be used to define "performance," "doing poorly," and "clearly overpayed." Who gets to decide these things? Why do they decide to use certain measures of performance and not others? Do they look at long-term performance or short-term? Every decision they make in that process would distort private businesses. The CEOs would know what it takes to get paid and they'd simply pursue those measures to the detriment of the company and ultimately the US. I have an excellent other way to do this. You and I can step up. There is a wealth of information available to the public including exec. compensation, company performance and company ethics. If you are going to make a purchase then go online and do the research.
        • 3 Years Ago
        @Dennis Baskov
        [blocked]
        grandprixc
        • 3 Years Ago
        @Dennis Baskov
        I am in utter disagreement. I'm all for smaller government. The last thing we need in the U.S.A. today is more government intervention and influence in the private sector. Wake up.
      Avinash Machado
      • 3 Years Ago
      That spammer needs to be banned. He keeps posting about a Panasonic Lumix GF 1 Camera under various usernames.
        ryan
        • 3 Years Ago
        @Avinash Machado
        complain to autoblog lets get this sh@t taken off. the weirdest thing, the site donest exsits, so what the point?? to just get more hits at other rip you off bid sites. Or like autoblog stupid 5.65 comero that was a also a scam, which is why i have a theroy autoblog is letting the spammer adverstise for more or somthing.
      chickenflauta
      • 3 Years Ago
      Well that certainly SOUNDS good to hear... but are there any other stipulations with that cap? Increasingly in the US, the benefits of being a corporate exec are in the perks, annual bonuses, and stock options, not in base pay. I'm wondering if this is all just words if total comp ends up still being exorbitant. Given the way corporate America works, I'm not ready to give him the benefit of the doubt.
        LostBoyz
        • 3 Years Ago
        @chickenflauta
        Its kind of hard to get stock options in a company that isn't publically traded, so here pay is far more significant
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