Wagoner cries all the way to the bank
posted at 2:46 pm on March 30, 2009 by Ed Morrissey
I guess Barack Obama really showed Rick Wagoner who’s boss. By forcing GM to cut Wagoner loose as a condition of getting more subsidies, Obama triggered Wagoner’s golden parachute. GM gets to pay Wagoner a fortune for not working as a result:
Rick Wagoner will leave his post as CEO of bailed-out General Motors with a $20 million retirement package, the company’s financial filings show.
Although the Treasury Department has barred GM from paying severance to Wagoner or any other senior executive, Wagoner is eligible to collect millions in retirement benefits from his former employer, according to the documents reviewed by ABC News.
The Obama administration asked for Wagoner to resign Sunday, as part of its restructuring of the auto industry. President Obama said this morning that forcing Wagoner out indicated it was a time for new leadership.
There may have been good reasons to jettison Wagoner. His inexplicable decision to take a private jet to DC in order to beg Congress for a handout would be one of them, certainly, as would the general financial condition of GM. Wagoner’s presence hasn’t done much to turn around the automaker, and the company may — or may not — do better under different leadership.
However, by forcing Wagoner out, Obama gets the blame for additional costs that GM would not have had to incur. Rather than demote him, Obama demanded his resignation, triggering his retirement benefits. GM will have to shell out a fortune to Wagoner while negotiating concurrent payments to whomever is foolish enough to follow in Wagoner’s footsteps.
Expect a new round of outrageously outraged outrage on Capitol Hill and in the media over the terms of Wagoner’s retirement benefits. If the federal government didn’t like the contractual obligations into which GM entered, though, perhaps it should have refrained from investing in the company at all and allowing them to declare bankruptcy from the very beginning.
Update: A couple of commenters claim that ABC got this story wrong and that Wagoner isn’t due any severance, and point to the reporting in this WaPo article from last night. Read it carefully, though:
Wagoner’s resignation does not mean that he will leave the company immediately. He will continue to draw his $1 annual salary, because if he leaves the company he is entitled to a multimillion-dollar pension that the government does not want to pay, a source familiar with the matter said.
ABC didn’t report it as a “severance package,” and GM is on the hook to pay his already-negotiated retirement benefits — unless they can clear them in a bankruptcy proceeding (which is doubtful for pensions), but which will also void the union’s contracts at the same time. If he’s resigning, they’re going to have to pay those benefits, and probably sooner rather than later, and the White House can’t do anything about it.
Blowback
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Maybe that can be a new model of car The Revolt.
zmdavid on March 30, 2009 at 3:34 PM
No amount of mindless Obama-cult religious devotion is going to help you overcome the disastrous reality of electing a pathetic affirmative-action moron as POTUS.
You own this…and I for one am going to make sure you eat every inch of that bale of razor wire.
Maybe you’ll learn something.
LimeyGeek on March 30, 2009 at 3:34 PM
“I didn’t get a ‘harumph’ outta that guy!”
“You watch your ass.”
Doughboy on March 30, 2009 at 3:34 PM
It’s tradition that, at about this time in every new administration’s first 100 days in office, pundits begin nominating negative words or negative phrases which summarize the president’s performance. For example, Clinton’s first 100 days were characterized by “adrift” and “disarray.”
Barack Obama’s first 100 days=”Catastrophic”
Submit your negative word or phrase.
Christien on March 30, 2009 at 3:12 PM
How about “Bubble-icious”?
TexasJew on March 30, 2009 at 3:35 PM
Most Americans are far too dumbed-down and gutless.
More and more, I’m settling on the conclusion that ‘true’ patriots are going to have to coordinate and secede.
LimeyGeek on March 30, 2009 at 3:35 PM
Ed,
It’s appropriate to use Wagoner’s firing to focus attention back on Obama and Congress, as well as their inevitable outrageously outrageous outrage. I think it’s even better to cut Wagoner out of the loop quickly and make this whole thing solely about Obama.
Hence, my leap to the Name Obama’s First 100 Days competition. You could make a very interesting, fun poll from it.
Christien on March 30, 2009 at 3:36 PM
Golden Parachute. Brownie Motors didn’t anticipate that.
Why aren’t Reeid and pelosi riled up? Did they get left out of this move?
seven on March 30, 2009 at 3:37 PM
Unnamed Democrat U.S. Senator, overheard in his office about five minutes ago: “Laura, what’s 90% of $20 million?!”
cackcon on March 30, 2009 at 3:38 PM
Obama’s first 100 days… Outrageous.
myrenovations on March 30, 2009 at 3:39 PM
Obama’s first 100 days… Revolution, comrades.
faraway on March 30, 2009 at 3:40 PM
Unnamed Democrat U.S. Senator, overheard in his office about five minutes ago: “Laura, what’s 90% of $20 million?!”
cackcon on March 30, 2009 at 3:38 PM
If it’s Robert Byrd, the accepted answer is “825 grillion”.
TexasJew on March 30, 2009 at 3:40 PM
New advertising slogan for Toho Studios:
“Uerkel versus Godzilla – this time, it’s ironic!”
TexasJew on March 30, 2009 at 3:43 PM
I see that you have been given a new phrase to parrot. How do you trolls like “Go To Meeting (TM)”? We were wondering where you pukes were earlier.
thomasaur on March 30, 2009 at 3:43 PM
Instead of all this waste of time and effort, Congress should have announced a deal similar to what is going on in Germany:
Trade in your 9-year old (and older vehicle), buy a new vehicle (or less than 1 year old used) and the German govt. pays 2,500 Euros of the cost. (The old cars are junked which takes the polluters off the road.)
Car sales are booming in Germany (especially small, fuel efficient cars) and keeping factories running all over Europe.
albill on March 30, 2009 at 3:44 PM
(Somewhat O/T)
Early Entries:
[Expletive Deleted]
Flatlined/cratered/witless/pitiful
The most effective crisis exploitation in history
FUBAR
Disastrous
Gaffe-tastic
BOHICAAAAAAA (Seven “A”s)
Bubble-icious
Outrageous
Revolution, comrades
Christien on March 30, 2009 at 3:47 PM
First 100 days – “In the first 100 days President Barak Obama was found to be following in Lenin’s Footsteps. His contribution to Marxist theory will be commonly referred to as Obamanism.”
Guest1.1 on March 30, 2009 at 3:48 PM
………. I just love that saying.
Seven Percent Solution on March 30, 2009 at 3:51 PM
People insist that Obama is a crack constitutional-law scholar–debatable since he never published a scholarly article in 25 years. But leaving that aside, I’d love to see a poll of partners in the business departments of the top law firms of the country, and the question would be whether they’d hire Obama given the business-law instincts that he’s demonstrated in his career and, most important, recently. My bet is that, if interviewed, Obama wouldn’t even get a call back.
He screams about these compensation arrangements all the time. Yet he idiotically triggers it with a move that surprised most industry insiders.
Obama and Congress have no business in these matters. If they want to do something about executive compensation, then make it easier for shareholders, the real parties in interest, to affect these arrangements. But Obama, Pelosi, Reid, Dodd, Frank, et al. should have no ability to pick winners and losers.
BuckeyeSam on March 30, 2009 at 3:55 PM
Obama has created another diversion
Meanwhile in defense of Waggoner, this article via Drudge:
Waggoner was up against the UAW, the State political machine, the corporate inbeds, and the stockholders.
Before the economic crash, anytime anyone would shake a stick at the sacred barnacles of any of the Big Three the stock would dip a penny and stockholders would flee.
Computerized trading has made the world faster and made the possibilities of even minute changes more devastating.
Our fickle investors and the speed of information acted as brakes on fixing anything before it was broke
The wage shake downs could not happen until the company turned its pockets inside out.
We have all been brought down by human avarice and scientific facilitation
entagor on March 30, 2009 at 3:59 PM
Considering that Tennessee is a red state that only got more red in 2010 (not to mention that McCain won +60% of the vote), my guess is this plant will be “sacrificed” just as Wagoner was…for the good of Detroit, doncha know.
ladyingray on March 30, 2009 at 4:00 PM
Our leader is genius. Sheer genius. By the end of his second term he could easily destroy all car manufacturing worldwide. That should put a slow-down on that pesky global warming thingy his ilk deem so important to mankind’s survival. Sheer genius I tell you.
Griz on March 30, 2009 at 4:01 PM
OK Ed, what was he suppose to take? Amtrak?
Why arent you complaining about elected officials taking jets all over kingdom come when we dont have the money as a nation?
And here we are talking about a CEO taking a jet to Washington? Faux outrage?
TheHat on March 30, 2009 at 4:02 PM
I really think this is quite humorous. If I were Wagoner, I’d give the entire administration the middle finger and live happily ever after with my $20 million.
The Obama administration bungled this one AGAIN. Rookie mistake. Obama should have known that this forced resignation would trigger retirement benefits.
But as usual, the kids on his staff didn’t read the fine print…
pullingmyhairout on March 30, 2009 at 4:07 PM
So, are they firing him now so that he can’t cash in on any of this? Doesn’t sound likely that he’ll get anything.
Count to 10 on March 30, 2009 at 4:12 PM
I think Ed was saying it was a bad business decision, because the resulting publicity hurt the company. Possibly, he should have driven one of the cars his company makes, though that might have taken two days.
Its kind of a bad show to wear gold cuff links when you come hat in hand looking for a handout.
Count to 10 on March 30, 2009 at 4:16 PM
1st 100 days?
Marxistly delicious
DrAllecon on March 30, 2009 at 4:17 PM
Would appear that the stock market won’t allow patience or persistence – down 254 points today.
katablog.com on March 30, 2009 at 4:21 PM
1st 100 days…ok one more…
A complete Obamanation. Which can be taken 2 ways. Zero guesses on which way *I mean it.
DrAllecon on March 30, 2009 at 4:25 PM
My Dad works for GM. After the union took over the health care benefits, the benefits got much worse than they were before.
It was a smart move on the part of GM to place the responsibility on the unions so they would understand how expensive the benefits truly were. It also exposed their hypocrosy….when the money was GM’s money they were happy to spend it on ridiculously great benefits (we never had so much as a $1.00 copay for a doctor’s office visit) but as soon as they were in charge, they scaled the coverage way back.
JadeNYU on March 30, 2009 at 4:25 PM
Okay, you yourself may not be “outraged” exactly, but haven’t you caught a little populist fever yourself? Where has Wagoner “cried”?
Buy Danish on March 30, 2009 at 4:25 PM
Good for HIM! The Law of Unintended Side Effects remain in force.
Now, there is the little matter of that 90% tax…
unclesmrgol on March 30, 2009 at 4:35 PM
….get one a 90% tax bracket.
Obama Franks Waters LLC
unclesmrgol on March 30, 2009 at 4:37 PM
That’s only on “bonuses”. Not “retirement benefits”.
That will be rectified in the next reactionary bill pushed by Pelosi.
teke184 on March 30, 2009 at 4:38 PM
How reVolting.
Obama Franks Waters LLC
unclesmrgol on March 30, 2009 at 4:38 PM
Don’t blame Ed. ABC apparently got the story badly wrong. I know, shock!!
The Washington Post story that JeffInSac linked to here has much more detail. ABC’s story is shallow, repeating uncritically for example the criticism that Wagoner focused too much on selling trucks and SUV’s, when in fact that was what was in demand at the time.
In fact, the ABC story has nothing in it that might undercut the “class warfare” theme.
Hey, Ed! How about an update to correct the record, rather than leaving the “Golden Parachute” theme unchallenged?
tom on March 30, 2009 at 4:38 PM
The government just bought my toxic assets, I resigned and got more of your money.
Sweet.
getalife on March 30, 2009 at 4:45 PM
Far, far awayclose, too close, in a nascent administration, there exist a vast black hole, surrounded by a crushing gravity and a roaring sucking sound…Yoop on March 30, 2009 at 4:49 PM
Oh, didn’t you read?
He’s only getting $1. Per year (he’s not allowed to really leave, because then they would have to pay him).
Count to 10 on March 30, 2009 at 4:50 PM
Randtastic.
Count to 10 on March 30, 2009 at 4:51 PM
I believe Wagoner was not a Union Supporter, The Unions wanted him out. Now who do you think is pulling The Presidents Strings? 20 Million to get a CEO that is more favorable to the Unions – That’s Peanuts when you consider the big picture. It is just Smoke and Mirrors.
Guest1.1 on March 30, 2009 at 4:54 PM
A public relations mistake, for sure – but not, necessarily, an indication of poor management skills. Remember, he’s not the only one who took a corporate jet to those hearings.
Be that as it may, though, I hardly think that permitting the Federal government to decide who should stay and who should go – in private industry – is a good use of taxpayer money. Not that it matters to the Big O, of course.
uncivilized on March 30, 2009 at 5:01 PM
Also, if you read the WaPo article…Uncle Big O is telling Chrysler that they must partner with another company – and they are telling them that company must be Fiat – within 30 days in order to receive more bailout money. Now, what’s wrong with this picture? Doesn’t Chrysler have a board of directors? Exactly what experience does Big O have in managing an automobile company? For that matter, what experience does Big O have in managing?
uncivilized on March 30, 2009 at 5:25 PM
The local TV stations in Washington, D.C. have been running segments on The First Hundred Days which have turned out to be not the grand progression of success upon success they had anticipated. Instead we have had a continuous Freak Show here in Zimbabwe on the Potomac.
Dhuka on March 30, 2009 at 5:27 PM
Obama is pushing his recession into a depression.
Johan Klaus on March 30, 2009 at 5:29 PM
How much of your retirement has Obama ate up.
Johan Klaus on March 30, 2009 at 5:30 PM
The big O=0
Johan Klaus on March 30, 2009 at 5:32 PM
I drive a GMC SUV. I will never buy a GM as long as the government is involved. I hope nobody else does either. We are on a slippery slope here and I haven’t heard a single Republican today. This drive by media should be ashamed of themselves for not reporting on this stuff. Some people are so uninformed that it is scarry. I have a big mouth, and I’m going to start walking around with a soapbox.
suzyk on March 30, 2009 at 5:36 PM
Wagoner walks away with enuf moolah to start his own automobile company!
Halli Casser-Jayne
http://www.thecjpoliticalreport.com
The CJ Political Report on March 30, 2009 at 5:36 PM
Obama the HEAD of the Ministry of Plenty.
Dr Evil on March 30, 2009 at 5:53 PM
Don’t forget the trillion $ Obama handed over to the hedge funds- more than the bailouts.
You dont really need patience… Obama’s fast tracked an economic collapse.
Chuck Schick on March 30, 2009 at 5:56 PM
I rather see Wagoner get the money than Obama.
Terrye on March 30, 2009 at 6:00 PM
Obama’s first 100 days in office = Unrivaled Incompetence
RedbonePro on March 30, 2009 at 6:00 PM
Obama and the Dem congress blow holes in the Golden Parachute and organize bus tours to Wagoner’s house in 3…2…1…
TheBigOldDog on March 30, 2009 at 6:07 PM
Like stealing tax candy from a baby- Ogabe
lasertex on March 30, 2009 at 6:08 PM
I’m sure you’ve read the studies that show your average hybrid and electric car do far more harm to the Earth through the mining and productions processes necessary to produce the batteries and other components not to mention the affect on the electricity grid. But hey, don’t let that stop you. The less gas you use the more there will be for me and my 28′ Cigarette boat with its twin 350s (Mercury 260s are really marine Chevy 350s). Thanks for doing your part!
TheBigOldDog on March 30, 2009 at 6:15 PM
75% of Americans either voted for that despicable sack of cold human shit or they couldn’t be bothered to vote at all. That leaves 25% of us to pitch a fit. I know we at HA are doing our part…I wonder how the rest of America is doing.
csdeven on March 30, 2009 at 6:18 PM
Sounds like someone got a raise down at the Dairy Queen.
Chuck Schick on March 30, 2009 at 6:25 PM
Nominee Barack Obama John McCain
Party Democratic Republican
Home state Illinois Arizona
Running mate Joe Biden Sarah Palin
Electoral vote 365 (projected) 162 (projected)
States carried 28+DC+NE-02 21
Popular vote 66,117,432 57,847,877
Percentage 52.6% 46.1%
75% of Americans voted or Obama, I don’t think so. 46.1 % of voters voted for McCain/Palin that isn’t a small number.
http://en.wikipedia.org/wiki/United_States_presidential_election,_2008
How many of those that voted for Obama are now experiencing Buyers Remorse?
Dr Evil on March 30, 2009 at 6:29 PM
Honest to God, are you kidding? You make it sound like he purchased a private jet just for the occasion. It was not inexplicable, it was rational. The corporation had private jets for executives to use and he used one. That Congress and this asshat of a POTUS hypocritically berated and hectored over the issue was disgraceful enough without reasonable people on our side adding to the demonization. I wish the executives had told Congress to stick it when next they went to DC ludicrously lumbering along the highways and byways in order to appear chastened before the inquistors. Also wish Wagoner had told Obama no when told to quit and not turn to DC for the help. But enough with the idiotic hand-wringing over the corporate jet business.
KittyLowrey on March 30, 2009 at 6:35 PM
Where the hell did you get 75%?
ORconservative on March 30, 2009 at 6:46 PM
Na. Barry O’s Chevrolet at 1600 Pennsylvania Ave is giving out new Fannie Mae Auto loans. No money down. No interest for 60 months. No credit check. No problem. He’s guaranteeing every application gets approved!
TheBigOldDog on March 30, 2009 at 6:47 PM
America sowed the wind and is about to reap the whirlwind.
TheBigOldDog on March 30, 2009 at 6:51 PM
Osama Obama is playing the Saddam Hussein Coward Game, this time using the GM employees as human shields. If no one buys their cars, they die, while the child-president goes happily along in his “corporate” jet, cushioned by the trillions of counterfeit dollars he has shoveled to his pals.
Obama will be taken care of. He’ll enjoy a retirement of unparalleled luxury, courtesy of (who else?) us.
Unless, that is, Congress wises up and impeaches his Marxist @$$ before he turns this country into a mix of zimbabwe and 1917 USSR.
MrScribbler on March 30, 2009 at 6:54 PM
Economy saved.
Big auto restructured.
Now back to his agenda.
getalife on March 30, 2009 at 6:58 PM
Wish someone would put together a video like Johnny Carson’s used car salesman routine, with Obama selling cars and warranties..
nondhimmie on March 30, 2009 at 7:01 PM
Hey getawife, try reading this piece about who your “greedy bankers” were backing in the last election – you MIGHT be surprised!
http://www.anncoulter.com/
Sweet_Thang on March 30, 2009 at 7:01 PM
How about Obaminable?
Sweet_Thang on March 30, 2009 at 7:05 PM
Ooops forgot world regulations at G20 then back to agenda.
getalife on March 30, 2009 at 7:12 PM
Sweet_Thang on March 30, 2009 at 7:01 PM
Yup, they donated billions to both parties the last ten years.
I know.
getalife on March 30, 2009 at 7:14 PM
You guys just validate my position like mad. You sound just like the people on HuffPo.
God hate anyone who gets a bonus.
Right-wing, left-wing…..doesn’t matter.
You’re all alike.
AnninCA on March 30, 2009 at 7:22 PM
GM has the best attorneys. There is absolutely no way that GM signed onto a deal with Obama blindly (like our asshat legislators–insisting on signing before reading so they could feign ignorance of the very details contained that they put in themselves).
GM knew what Obama was going to pull. Hell, even I knew! The GM hierarchy knew they were giving the corporation to the state when they signed up for a bail-out, that Obama would force them into a bankruptcy that Obama would broker with the same prowess that he managed Fannie Mae/Mac. GM knew that they could have simply gone into bankruptcy proceedings independently without delivering the company into Obama’s hands to nationalize. They are all complicit; all are in it together. Everyone has a price tag.
The auto unions are next on the “change to believe in Obama” chopping block. Their membership THINK they are too big to fail. But THEIR lawyers and THEIR OFFICIALS are selling out every auto worker to the Obama dictator. It’s in the works; and there WILL be card check HE can believe in Obama’s union.
It is sick. Union members had better do their talking outside of leaders’ earshot. This is not going to be pretty. Union members who won’t go along with Obama will be terminated without benefits! CAST OUTS. Guess who’s taking your job? That’s right, an illegal immigrant that Obama will legalize, “so much more hard working that you, after all,” he will propagandize.
And Obama won’t stop at regulating corps getting tax dollars; he will apply all REGULATIONS and restrictions and tax and caps on every industry, driving them all into the dust.
maverick muse on March 30, 2009 at 7:22 PM
.
Unconstitutional
News2Use on March 30, 2009 at 7:23 PM
Yep, let me off this sinking ship.
izoneguy on March 30, 2009 at 7:33 PM
“Fascism is a radical, authoritarian nationalist ideology that aims to create a single-party state with a government led by a dictator who seeks national unity and development by requiring individuals to subordinate self-interest to the collective interest of the nation or race.”
- Wikipeidia
Recognize it?
itsspideyman on March 30, 2009 at 7:37 PM
mav, it’s so true. Obama could care less about saving any corps. His agenda is to destroy industry. His agenda is to annihilate the economy, forcing the belief that only “big government” can save us…thereby consolidating Obama-power and make us all genuflect before it. We are fools to buy into Obama outrage.
I, for one, won’t be outraged and exorcised that there is money for GM’s CEO…all parties knew about this contract before the resignation/firing. Outrage begets chaos, chaos begets a revolution against capitalism…which is exacly what Obamalinsky wants.
Read Alinsky…and shiver with genuine fear.
marybel on March 30, 2009 at 8:05 PM
No Sh!t. I just don’t get why all these bailouts, buyouts, socialized medicine, etc. would even be considered by sane people. What has the government ever run (with the exception of the military in recent history) that hasn’t turned out to be a total clusterfark?
2ipa on March 30, 2009 at 8:05 PM
When a large portion of the population starts losing their access to the Internet/TV/cheap junk food. If it’s been said once, it’s been said a million times.
Take away people’s freedom and privacy and most of their money – and the reaction of the majority? Little or nothing. Even praise for the marvelous magical mongrel Marxist they elected as President. But take away WoW or American Idol or make the prices at fast-food joints go up ~$10 – THEN you’ll see some outrage.
Dark-Star on March 30, 2009 at 10:01 PM
http://www.examiner.com/x-5919-Norfolk-Crime-Examiner~y2009m3d29-Illegal-immigration-is-not-a-victimless-crime-for-this-Virginia-Beach-family
RealDemocrat on March 30, 2009 at 10:50 PM
Wagoner has no stones. If he loved GM he would have taken it to bankruptcy court rather than turning it into Government Motors. Now Ford will be crushed by a government subsidized and GS -13 managed car company that will turn out American versions of Russian Volga cars that nobody wants.
kens on March 30, 2009 at 11:00 PM
That’s the Obama strategy in a nutshell. He has taken the community organizer skills and writ them large.
His little foot soldiers, such as those who infect conservative websites, are the enablers of the chaos.
Maybe Obama should be arrested for inciting riots and civilian unrest.
onlineanalyst on March 31, 2009 at 12:13 AM
If the German government were to end that program then those same cars would suddenly become 2,500 Euros cheaper.
AaronGuzman on March 31, 2009 at 12:14 AM
Good grief, wasteofalife, you can’t even keep your own story straight. I thought the “mess” was all Bush’s fault? Now it’s not?
Fed45 on March 31, 2009 at 1:08 AM
Apocolyptic
Fed45 on March 31, 2009 at 1:10 AM
er… check that:
Apocalyptic
Fed45 on March 31, 2009 at 1:11 AM
Ummm…I don’t believe there are retirement plans for part-time pizza delivery drivers
Fed45 on March 31, 2009 at 1:26 AM
There! FIFY.
And, out of respect to all the women, let’s refrain from referring to Barry as “Big O”
Fed45 on March 31, 2009 at 1:32 AM
Seems like it all hangs on this deal of paying Wagoner $1 a year. To avoid paying Wagoner his retirement, he would have to resign his position while still working for the company. If the government forces him to do that, it sounds a lot like slavery. I wouldn’t think the government could do that, but apparently they can take over a major corporation, fired the CEO, and replace the Board of Directors. Are there no limits?
ThereGoesTheNeighborhood on March 31, 2009 at 1:34 AM
I know you are bitter, but saying things like this shows your ignorance of how the corporate word works. I’d try to explain it, but I doubt those here that think these types of contracts are evil would understand. People at this level are no different than professional coaches (at the college and pro level). Companies offer them these kinds of contracts to ensure they don’t go “coach” for the “other team”. GE kept Jack Welsh around for so long for a reason. They made it financially unattractive for him to leave for another company. And don’t base your opinion of Waggoner on where GM is now. He didn’t run them into the ground; the UAW did.
Fed45 on March 31, 2009 at 1:47 AM
For the record: Wagoner has voluntarily given up much more in salary and bonuses to which he was entitled by legal contract over the last several years. Also, the estimated $20 million value of his pension is over his remaining lifetime, not a lump sum.
`
The private jet was a PR blunder. He should have flown business class (at 6′ 4″, coach isn’t practical) or better yet made a cross-country drive over several days, stopping to chat with locals and let them test-drive GM cars.
`
Wagoner had made substantial progress in righting the ship at GM, but he should have been more aggressive fighting the union and extracting concession or closing more plants. The problems at GM stemmed from a long series of management decisions to trade future benefits for current labor peace, until the sums which had been kicked down the road started coming due.
`
They’ve run off a good man at the time he is most needed. About par for the course of Obama’s decisions so far, though. Not Ready For Prime Time Barry . . .
`
Adjoran on March 31, 2009 at 2:44 AM
There are actions and consequences. Go against the company’s beliefs, get punished for it.
I will. They’ve yet to design a golfcart that wasn’t a “captive import”.
sethstorm on March 31, 2009 at 3:28 AM
+100
Or structure it so that you can’t just raise it by 2500 to account for it.
sethstorm on March 31, 2009 at 3:30 AM
http://www.foxnews.com/video2/video08.html?maven_referralObject=4083600&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/
This video tells the simple truth…
Keemo on March 31, 2009 at 8:03 AM
Obama wants to be “the people’s” Potus, he had better apply taking the bullet to banking CEOs. But since THEY covered his corrupt campaign finances that got him into office, it ain’t gonna happen.
So Auto Workers, take note sooner than later that YOU are expendable; YOUR jobs are considered better terminated/outsourced as Obama whims. YOU and your unions thought Obama would be YOUR sugar daddy. Get real. The ONLY people that matter to Barack are himself, Michelle and his two girls, period. He will serve his Soros master not from loyalty to him, but because it is to his own selfish interest to do so.
Greed, Obama is thy power grab manifestation.
maverick muse on March 31, 2009 at 8:34 AM
This may be a day late but i disagree with the captain on this point of Wagoner not doing his job well enough. I’ve seen many great cars coming out of the GM plants. The Malibu has won many awards. Reliability has gone way up. The car divisions are becoming more specialized which was a good move which means the interdivision clones have all but disappeared. The union legacy costs were the biggest stepping stone. If only the union wasn’t so powerful then the auto companies wouldn’t be in this much trouble today.
Oh and I would buy another GM car, even a Ford car(I never was too crazy about the blue oval brand) because they are 100% better than they were ten years ago.
If and when GM gets over the hump, it will be little doubt that Wagoner had a bunch to do with it so don’t start giving the credit to Fritz.
larvcom on March 31, 2009 at 8:53 AM
And what position might that be? The Missionary? You come out of left field with this; there is no prior comment on this matter at all on your part outlining what position you might have. Suddenly the flamethrower comes out…
Ed’s article certainly makes the claim that Wagoner is entitled to his severance package, regardless of perceived transgression. I, in my comments preceding this one, have made the same claim — that Wagoner has the moral upper hand here as well. I think he deserves every penny — and more. Obama’s request that he resign has sullied his reputation, as well as underlined the root point that Obama now owns GM — not the stockholders. But the fact that GM has not gone through bankruptcy keeps in place the legal requirement that it honor every contract it has made as written — including its contract with Wagoner. That puts the Government on the line as owner. Now, the Government can pass a law rescinding that obligation, but that will certainly be viewed as a Bill of Attainder — possibly by the Supreme Court as well.
Again, Wagoner deserves every dime he negotiated out of GM, just as those execs at AIG deserved their bonuses too.
It’s all faux outrage, orchestrated by the White House as a red herring to justify their nationalization of a private corporation.
unclesmrgol on March 31, 2009 at 9:38 AM
Be lucky he isn’t stacking the Supreme Court, ala Bush & FDR.
sethstorm on March 31, 2009 at 11:08 AM
I think the CEO has set a great example for Obama, perhaps he should resign in order to save the country.
workingforpigs on March 31, 2009 at 11:31 AM
What a petty little tin-pot dictator Obama is turning out to be.
spmat on March 31, 2009 at 11:44 AM
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