MSNBC.com published an article entitled "GM boss steps down at White House's request." What a nice way to say he was fired! According to the article, Chairman and CEO of General Motors Corporation, Rick Wagoner, was asked by President Obama to step down and he agreed to do so.
Wagoner has a 32 year history with GM working all over the world. The company's vice chairman and chief operating officer has now been appointed CEO. There have been mixed comments as to Wagoner's departure. Some feel the move is "political theater" and that Wagoner was a "sacrificial lamb."
Wagoner , CEO since 2007, did do plenty of good things for GM. Unfortunately, some critics say Wagoner moved too slowly. In the past four years, GM has had $82 billion in losses. But, they say he was moving the company in the right direction.
Apparently Wagoner isn't the only CEO to lose his job. Fannie Mae and Freddie Mac CEO's were also forced out of their positions after the government took over the companies.
Since government loans were involved, Wagoner cannot receive a severance payment. He is eligible to retire under the GM's salaried employee and executive retirement plan. According to another article, "GM CEO gets $23 million estimated pension," he made out like a bandit, even though he was fired. Wagoner's pension was valued at $22.1 million, but he will receive that in payments over the rest of his life, so the actual amount may be different. I don't think he will be too greatly affected by a different amount with that much money! We can only wish to make that much money in a life time!! Also, he gets about $367,000 in stock awards and $535,000 in deferred compensation. Once again, someone getting fired from a job sure does get rewarded!
I guess I'm not too sure how firing the CEO's of the big companies is going to help the company. Maybe people will be happier thinking something is being done. The CEO's must report to a board of directors, don't they? The CEO doesn't make all the decisions alone. So unless there are changes made to other personnel, I don't see how things will change too much for the company. I think these firings are just more political games being played to try to make things look good.
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I have had the same thoughts about all these CEO firings being just another part of the political game. As you so aptly put it, what does firing Wagoner with a $23.2 million severance package really do for the good of the company? To me, your average person, it would still appear that the company is expending some serious cash to get rid of what they have called their biggest problem.
ReplyDeleteThis whole thing about firing CEOs or asking CEOs to take a pay cut is just another fancy step in the PR dance. All the major companies are trying to show a responsible side to the consumers, but some are faltering half way through the dance.
I agree how is firing a CEO going to help a company. Or having them take a pay cut. We are hearing this day after day on the news about the CEO's of major companies. It is also very sad to me that all of this is happening with our economy today. I think companies are trying their best to just stay alive right now. I am not sure if what they are doing is the right way, but who am I to say they are or they arent. We all just have to listen and watch the news each day to see what happens with the larger companies in our society.
ReplyDeleteI would have to agree with you thinking that this seems to be political. This is obviously not going to hurt Wagoner much at all. The company has been losing money they say, but if his fellow employees say he was going in the right direction I do not see why firing him will help their losses. I could understand if he was embezzling money or something, but it just seems the company is going through some hard times and I don't think the firing of Wagoner will solve their problems at all.
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