New rules cost GM's Henderson cash but may hike his pay

[Romulox]

Source: Detroit Free Press

Under new pay restrictions for companies that received federal assistance, General Motors Co. CEO Fritz Henderson will get less cash but may see an overall larger pay package.

Henderson’s total compensation package will increase to about $5.5 million under terms of the pay plan, a person familiar with the documents said.

Henderson’s cash salary, which was $1.26 million, is being decreased by 25% to $950,000. He will receive stock and restricted stock in GM valued at about $4.2 million.

Read more: http://freep.com/article/20091022/BUSINESS01/91022070/1319/New-rules-cost-GM-s-Henderson-cash-but-may-hike-his-pay

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:wtf: :shrug:

[notesdev]

1. Damn

I could use a "pay restriction" like that.

I've got a better idea; let's set the salary for the job at $250k. If he doesn't want it I can guarantee that we can find someone who can do the job better than him* who will be perfectly happy with that figure.




* given GM's performance, a dart-throwing monkey qualifies

[SPedigrees]

3. LOL. Have to agree with you that a dart-throwing monkey would be an upgrade.

[SPedigrees]

2. Part of Obama's plan is to replace the TARP Execs' pay with stock

so they will have an interest in their companies' future success. Hopefully this strategy will make the banking CEOs think twice about gaming with loans and mortgages, and more about the future security of their firms. That's the intended logic at least.

Considering GM's continuing failure, perhaps Henderson will be sweating the losses and taking some positive action to hold onto his $4.2 million in stocks. Personally I think American car cos are too arrogant and stupid to improve their products' design and increase sales, but time will tell. I won't be buying one, that much I can say for sure.

[notesdev]

4. How can there be any privately owned value

in a company that would be bankrupt and out of business entirely, if not for a massive publicly funded intervention?

[SPedigrees]

5. It IS hard to fathom. nt

[blue_onyx]

12. GM products are already good

"Personally I think American car cos are too arrogant and stupid to improve their products' design and increase sales"

Vehicles from foreign companies, particularity Honda and Toyota, have the most boring designs of any cars on the market. Additionally, GM's new vehicles are great and selling well. Edmonds says GM's October "market share should come in at 22.4 percent, a notable gain from the 19.1 percent share the automaker averaged throughout the third quarter of 2009."

http://www.autoblog.com/2009/10/17/edmunds-gm-market-share-will-grow-in-october/

This is in response to their new vehicles like the Buick LaCrosse which the LA Times says "blows the Lexus out of the sky."

http://articles.latimes.com/2009/aug/07/business/fi-neil7


GM makes great vehicles and I will eventually be buying one, that much I can say for sure.

[Romulox]

13. The Lacrosse looks like an "out of the park" hit...

http://image.automobilemag.com/f/29297880+w750+st0/0908_09_z+2010_buick_laCrosse_cXS+rear_three_quarter_view.jpg

[blue_onyx]

16. Yep

I was parked next to one recently and it looks just as great in person. The Buick Regal, coming out next year, looks great too. Unfortunately, Buick may be a bit too expensive for me.

[Romulox]

6. I think people would prefer not to deal with this, but it's not going away...

[WriteDown]

7. Its a shell game....

pure and simple.

[Romulox]

8. Who did the Obama admin think this would fool?

:shrug:

[WriteDown]

9. Pretty much everyone..

You'll notice this thread isn't exactly burning up.

[Romulox]

10. Right, but just because the Chrisitian Soldiers will ignore it doesn't mean the press will.

:shrug:

[WriteDown]

11. It will be interesting to see if anyone actually takes note....

of what the press is reporting. I am also anxious to see if anyone will be willing to buy GM cars at this point.

[blue_onyx]

14. What makes you think nobody will buy GMs?

GM sells about the same amount as Toyota and more than Ford, Honda, Nissan, Hyundai.

As I posted in another comment: Edmonds says GM's October "market share should come in at 22.4 percent, a notable gain from the 19.1 percent share the automaker averaged throughout the third quarter of 2009."

http://www.autoblog.com/2009/10/17/edmunds-gm-market-share-will-grow-in-october

[Romulox]

17. As a Detroiter, I think we lose perspective, and think that people are knowledgeable about cars

Despite everyone claiming to be an expert, I've found that many (most) people don't know where a car is made, or by whom. Saturn, for example, obviously exploited some confusion over whether it was a foreign marque or not. For another, I've had more than one person be shocked to find that their "German crafted" car originated in Mexico.

If the new Buick Lacrosse is sexy and reliable (and it is), people will drive it.

[WriteDown]

19. You'd think that but...

I've been in cars where people made fun of other cars just because of the badge. They had zero knowledge of the car itself.

edited for spelling.

[Romulox]

22. Agreed, but it seems like one hit product can really change the game

and the converse is true--the giants can fall from grace. It happened to GM, it appears to be happening to Toyota.

All I know is that the Buick will turn heads if they can get a few young urban professionals behind their wheels. On the other hand, Lexus has started to occupy a lot of the same ground that Buick is retreating from--the old and stodgy crowd (except they will kill you, of course.)

[blue_onyx]

24. Yes, it just takes one product

The Detroit Free Press had an article recently discussing how Lexus is having some problems. It's becoming one of the "old people" brands. I think the average age of a Lexus buyer is 58 or 59 which is higher than other high-end brands like BMW.

I'm younger (25) and I like the LaCrosse. I just wouldn't be able to afford it. I have another friend my age who likes Buicks. Cadillac was able to shake the old people image when rappers started drive them. Buick's image can change as well and I think it will.

[Lance_Boyle]

20. Hey man - no raggin' on my gente-wagen! n/t

[blue_onyx]

21. Not that I think I'm super knowledgeable

but there are some people on DU that just make so many unture statements about the US automakers. For example, they say GM vehicles are not fuel efficient and too expensive. If they would actually look at the data, a Chevy Malibu has about the same mpg and price as the Camry and Accord.

I'm so glad GM kept the Buick brand. I've always thought that if GM gave it some investment, it could be one of their strongest brands. I think the LaCrosse will do very well.

[WriteDown]

18. Honestly...

Just irrational GM hate and the fact that many consumers won't buy anything from companies that were recently in BK.

[blue_onyx]

23. Most of those people

wouldn't have bought a GM before the bankruptcy anyway. GM just needs to focus on building great vehicles and not worry about GM haters.

[Romulox]

15. Fritz Henderson was GM's Chief Financial Officer (CFO) from 2006 to GM's collapse, btw.

http://en.wikipedia.org/wiki/Frederick_Henderson