If you slept through this Sunday's Meet the Press interview with General Motors new CEO Fritz Henderson, you didn't miss much. Mr. Henderson dodged host David Gregory's questions like a seasoned pro.
There was one question, however, that he couldn't avoid answering. Gregory asked Henderson point blank why he didn't agree to work for $1 like his predecessor Rick Wagoner. Henderson said he already took a 30% pay cut and that was where his salary would stay. Gregory then put the spurs to Henderson by asking him what his remaining salary amounts to, and not surprisingly Henderson didn't look too comfortable saying the number out loud.
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Inside Line News: Meet the Press Asks GM CEO, "How Much Will You Make?"
billt9 says:
05:16 PM, 04/ 6/09
Just playing on the unemployed people's frustration. Are we trying to get more gunmen on the lose here with this kind of provacation?
No one with a real job should work for $1 a year.
But maybe there should be a income cap for humans, say $15 million max a year or something.
Perhaps a tax law that taxes 100% over $15 million.
Movie and music stars exempt cuz they're da bomb with da popularity contest.
greenpony says:
06:10 PM, 04/ 6/09
billt9: http://online.wsj.com/article/SB121124460502305693.html
I'm not an officer in a corporation, but I'd like to be. If he's getting 1.3 mil in salary in tough times, imagine what he'll be making in a few years when GM's out of bankruptcy. If there's anyone in this world that is overpaid, it's athletes and celebrities. $20 million for a movie or for a year of playing baseball? How do these people deserve this for doing nothing intelligent or productive? It's a lazy person's dream job.
billt9 says:
07:48 PM, 04/ 6/09
greenpony,
That article makes sense.
But I'm not the government and I don't care about total tax revenues... hahaha. I am an internetizen, which means I get to spout random thoughts of the day.
My randomly proposed hard income cap of $15 million is pretty high. Is there really need for someone more productive than $15 million?
Do we need a $20 million CEO? Or is that extra $5 million better spent dispersed among the worker ants?
So the CEO can't work at a lightning $20M pace, he will only work at the $15M pace. What's so bad about that?
The movie stars, sports stars and music stars make their money righteously from volunteered donations. The people freely and willingly enjoy giving these people money. We love to pay them for their movies, to watch their sports games, and listen to their music.
There is nothing wrong with them making that much money as we the people freely love them and hand them money.
Their job is very intelligent and productive VICARIOUSLY. These entertainers exert a production boost on the entire population. This is a concept embraced by many strategic simulation games, that entertainers produce productivity by making the whole population more productive.
Happiness is increased production.
There is nothing lazy about these people, they work a lot. Where did that lazy comment come from?
brn says:
06:21 AM, 04/ 7/09
Rick get paid $1 and leaves for $20,000,000+. OK, we all know the $1 thing was a joke.
How much did Rick really earn? How much does Fritz really earn? $1,500,000? I bet it's more after benefits. In these tough times, most of those benefits should disappear.
billt9, I vote for $5mil as a cap and that should be reserved for mega corporations. You can live like a king on $5mil/year.
felonious says:
08:42 AM, 04/ 7/09
So... would YOU leave a $2MM/year job to run GM for $1?
How about a $1MM/year job?
How about your current job?
firstwagon says:
09:27 AM, 04/ 7/09
I'm more curious to know what auto workers make. I've heard numbers ranging from $48 to $64 per hour for doing what is basically simple assembly line work (insert part A into slot B just like you're told).
Considering there's only a handful of top management but countless thousands of autoworkers, it seems like a more important concern.
brn says:
10:36 AM, 04/ 7/09
felonious, my only issue was why even bother with the charade that they were earning $1?
crowb says:
12:23 PM, 04/ 7/09
Guys, the $1 is only their actual paid salary. The rest of their income comes from their stock options. The reason CEOs, and there is a growing movement toward this among CEOs of publicly traded companies, take $1 a year is so that their compensation is based on their performance and their ability to lead the company.
So, if a CEO makes $1 a year but the company does really well and the stock does well, he can cash in his options and that is where his millions will come from.
The guy that runs Google does this. As long as Google stock does well, he makes zillions. But if the company does worse, so does he. Its capitalism at work.
cwc1 says:
05:29 PM, 04/ 7/09
It is not up to you, me, or anyone, least of all the government, to determine what a person in private enterprise should or should not make. It is up to the market. The worth of anything is what someone else is willing to pay for it.
We are not a socialist nor communist country, but we are headed down that slope because so many have such a poor understanding of economic concepts. But GM stupidly opened itself up to this kind of control because they went to the government with their hands out. The occupants in the executive and legislative branches should have refused this on principle. However, it is quite rare when one in a position of power, given the opportunity to have more of it, turns it down. Thus, Obama and most members of Congress love it!
CEOs get paid a lot because the boards of directors are willing to pay that much for people of their business acumen. In general, they are not the horrible, rotten people that yellow journalism makes them out to be. There are exceptions that get all the coverage, but for that, the whole group gets indicted???
If anyone with the necessary expertise wants to work for less money, I'm sure many company boards would be glad to talk to them about a job.