The CEOs of the Big Three have huge compensation packages. In 2007, Rick Wagoner, General Motors, received $14.4 million in compensation; and Alan Mulally, Ford, enjoyed $21.7 million. Robert Nardelli, Chrysler did not report his compensation since Chrysler is privately held, but for reference he had a $38 million compensation program as CEO of Home Depot in 2005. Chrysler is currently paying out about $30 million in bonuses to 50 executives.
The CEOs of the Big Three should be limited to $250,000 or less in total annual compensation until the bailout loans are repaid, and the companies turn around. All executive compensation packages should fall in line under the $250,000 limit for the CEOs. Also, the pay of hourly workers should be reviewed for cost reductions.
Any federal infusion of money into the auto industry should include required changes to the labor contracts and executive compensation. Then the U.S. auto industry might right itself and provide competitive vehicles.
Donald A. Moskowitz