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.