Chrysler: Bonuses for executive rats to stay with sinking ship.

Blind_Io · November 14th, 2008, 06:50 PM

Quote:

Executive bonuses are a hot-button issue in these difficult economic times, and for good reason. As companies in every industry teeter on the brink of bankruptcy, paying out millions in bonuses to execs is a breach of trust to those white- and blue-collar workers in the cheap seats who are being asked to sacrifice benefits, retirement security and even their jobs to keep a company solvent. The Detroit Free Press recently discovered that Chrysler LLC has an executive bonus plan in place that will cost the automaker about $30 million at the same time it's asking Congress for federal aid money to keep the lights on. Chrysler's executive vice president for human resources, Nancy Rae, who herself is on the receiving end of $1.6 million in bonus money, tells the Freep these bonuses were designed to keep executives in place after the automaker was sold by Daimler to private equity firm Cerberus. She goes on to say the bonus plan was established by Daimler, not Chrysler, to ease a potential buyer's fear that execs would flee after the sale.

Be that as it may, considering how far Chrysler is from profitability at the moment, perhaps retaining these executives is the last thing it needs. Cutting loose the suits who are partially responsible for this mess and saving millions in the process seems like a more responsible move to us than begging Uncle Sam for bailout money.

Cobol74 · November 14th, 2008, 06:58 PM

Quote:

Chrysler LLC has an executive bonus plan in place that will cost the automaker about $30 million.

What! This is a joke right?

Spectre · November 14th, 2008, 08:26 PM

No, it's not.

Remember, Chrysler is privately owned now and has over $10B in cash reserves thanks to the parent holding company.

Wizegui · November 15th, 2008, 04:12 AM

"I can has bailout?" - Labcoatguy

I think the executives of Chrysler deserve the money for all the great work that they've done with the company over these past few years.

Spectre · November 15th, 2008, 04:21 AM

I think this is more for the new talent that recently hired on after all the Daimler execs fled the building. Remember, post 2002 Chrysler was an all Daimler show.

You'd have to come up with SOME reason to keep talent on hand.

GRtak · November 15th, 2008, 12:43 PM

Can you really call them "talent"?? This stuff is old news, a few years back, a Ford exec got a 2 million bonus while heading the largest losing division. Why do you give him a bonus??????

My whole view on the Big 3's bureacracies is that they are perfect for (re-)creating delusion and self-denial much like an addict.

hajj · November 15th, 2008, 06:35 PM

Quote:

Originally Posted by Cobol74

What! This is a joke right?

That's what I thought!! $30m in bonus seems a bit too little.

November 14th, 2008, 08:26 PM	#3
Spectre Joined: Feb 1st, 2007 Last Online: 07:39 PM Location: Dallas, Texas USA Age: 32 Posts: 3,592 Car: 87 XJ6, 95 XJR, 90 WD21, 86 CB700SC Rep Power: 57	No, it's not. Remember, Chrysler is privately owned now and has over $10B in cash reserves thanks to the parent holding company. __________________ 1986 Honda Nighthawk 700S (project, light restoration in progress) 1987 Jaguar XJ6 Series III Vanden Plas (modified) 1990 Nissan (WD21) Pathfinder SE 4x4 (little red offroad commuter box) 1995 Jaguar (X300) XJR (modified) My truck can swim the English Channel; what can yours do? It's just another day / Where people cling to light / To drive away the fear / That comes with every night

November 15th, 2008, 04:12 AM	#4
Wizegui Joined: May 3rd, 2006 Last Online: 03:54 PM Location: Richmond, BC Age: 17 Posts: 1,666 Car: 93 Toyota Tercel LFS Status: Rep Power: 21	"I can has bailout?" - Labcoatguy I think the executives of Chrysler deserve the money for all the great work that they've done with the company over these past few years. __________________ My 1993 Lexus IS 150... If you actually googled this up, then I've got some bad news for you...

November 15th, 2008, 04:21 AM	#5
Spectre Joined: Feb 1st, 2007 Last Online: 07:39 PM Location: Dallas, Texas USA Age: 32 Posts: 3,592 Car: 87 XJ6, 95 XJR, 90 WD21, 86 CB700SC Rep Power: 57	I think this is more for the new talent that recently hired on after all the Daimler execs fled the building. Remember, post 2002 Chrysler was an all Daimler show. You'd have to come up with SOME reason to keep talent on hand. __________________ 1986 Honda Nighthawk 700S (project, light restoration in progress) 1987 Jaguar XJ6 Series III Vanden Plas (modified) 1990 Nissan (WD21) Pathfinder SE 4x4 (little red offroad commuter box) 1995 Jaguar (X300) XJR (modified) My truck can swim the English Channel; what can yours do? It's just another day / Where people cling to light / To drive away the fear / That comes with every night

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Richard Hammond's Lab Rats	aaurora	TG Host Shows	16	October 15th, 2008 10:38 AM
Top Toyota executive joins Chrysler	Mopar Man	Automotive News / Spy Shots / Concepts / Rumor Mill	10	September 24th, 2007 02:10 AM
Cheney: "I'm not part of the executive branch" Congress: No Executive funding for you	Blind_Io	Political Discussion	23	July 12th, 2007 08:39 AM
rats (no 56K)	bone	General Automotive	33	September 11th, 2006 07:25 PM
Porsche to hand out big bonuses	pdanev	General Automotive	23	October 9th, 2005 11:14 PM

November 15th, 2008, 12:43 PM	#6
GRtak Joined: Sep 6th, 2008 Last Online: January 4th, 2009 Location: Michigan USA Age: 39 Posts: 166 Rep Power: 2	Can you really call them "talent"?? This stuff is old news, a few years back, a Ford exec got a 2 million bonus while heading the largest losing division. Why do you give him a bonus?????? My whole view on the Big 3's bureacracies is that they are perfect for (re-)creating delusion and self-denial much like an addict.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)