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GM Asks For Increased Salaries For Executives

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On: Tue, Dec 14, 2010 at 10:21AM | By: Sherry Christiansen


GM Asks For Increased Salaries For Executives

Dan Akerson, CEO of General Motors, is asking for a bit of leeway regarding restrictions that the government has imposed on the company's executive pay scale. According to Akerson, “We have to be competitive and retain talent. We’re starting to lose them now” Akerson stated that some executives have already accepted other more lucrative employment offers.  When GM accepted government funds, the company automatically relinquished control over many of its corporate decisions, including salary rates.

The present salary freeze at GM projects an image that corporate executives are leading by example, that the whole company can tighten collective belts and trudge on, pay back the government, and then go back to business as usual.

In the wake of the initial public stock offering, government financial interest in GM is down to about 33%. GM's present policy states that no salary-receiving employee is to receive a raise of any kind in 2011. Subsequently, Akerson wants to meet with the special paymaster of the U.S. treasury to attempt to be granted some leeway in the matter.

Akerson has explicitly stated that the automaker was determined not to repeat the mistakes of the past that led to the 2009 bailout. "We are humbled by our near-death experience," he said.

Not a lot of people would have staked their hard earned capital or belief that the company would be so well positioned for future success this early. “Three weeks ago, people by the hundreds of thousands did just that,” said Akerson. “They saw a new company positioned to break even in the U.S. near the bottom of the cycle, not the middle.”

It will be up to government officials to decide how to handle the request for increased compensation for GM's employees. The U.S. treasury has a significant stake in the company, about 33%. The government wants to see the company achieve success; otherwise the bailout will have been nothing more than a bad decision.

Today, GM sells more cars from Cadillac, GMC, Buick, and Chevy than it did with 8 brands in 2009.

“For the first time in a generation, the auto playing field in America is level,” Akerson said. “Now the best car can truly win again, and we're going to fight very hard to be the company that builds those cars.”



Comments

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AutoShopperJustin | 8:37PM (Tue, Dec 14, 2010)

Since the treasury is giving out money....throw some my way!



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