As Detroit's crumbling auto industry asks Congress for a bailout, Chrysler is in the awkward position of paying about $30 million in retention bonuses to keep top executives while the company cuts thousands of jobs.
Chrysler owes the bonuses under its contracts with about 50 executives, based on a retention incentive plan crafted early last year by former German parent DaimlerChrysler, when it was preparing to sell the Chrysler unit.
Nancy Rae, Chrysler executive vice president for human resources and communications, said the move made sense at the time to ensure potential buyers that key Chrysler executives would remain in place after a sale. She acknowledged that the bonuses could be seen as controversial now.
"We all would be smarter if we knew what we know now back in February of '07," she said. "Probably a lot of different decisions would be made."
Then there are the types of cars Chrysler has been making...
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4 comments:
It's like this with a lot of these
companies. Too many over paid
Execs. Enron & Arthur Anderson were
just the icing on the cake. but
that was just a little creative
accounting there
That's what happens when you're
inhaling paint & exaust fumes all
day.
Gas fumes in my nostrils makes me
happy. Paint "chips" in my eyes
can make me cry.
Interesting that Rae will collect 1.6 million dollars to stay for the next 8 months, while she approves 'buy-out/voluntary termination' plans that amount to a hill of beans. Nice job Nancy, I hope you can look yourself in the mirror tonight and feel good about what you've done!
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