Posted on 31-03-2009 by Vlad Balan
On Sunday, at the White House’s request, Rick Wagoner announced his decision to step down from his position as GM’s chief executive. If you feel or felt sorry for him, don’t be! Because, according to GM’s financial filings, Wagoner is entitled to a $20.2 million retirement package. That’s a lot of money and I’m sure everyone would be happy to get fired under these circumstances. According to ABC News, althought the Treasury Department halted all payments to GM’s senior executives, Wagoner’s retirement package is legal and can’t be stopped.
“I think it’s another perfect example of why there’s so much frustration among working people,” said Tiffany Ten Eyck of Labor Notes, a Detroit-based independent publication covering unions. “I wouldn’t mind retiring out of an industry in crisis with a $20 million package.”
However, there’s one thing that could cause Wagoner to lose a huge amount of that money and that’s if GM files for bankruptcy. Accrding to Dave Schimdt, executive compensation analyst with James F. Reda and Associates, only less than $1 million of the total $20.2 million is guaranteed in case GM goes into bankruptcy. However, Julie M. Gibson, spokeswoman for GM, said that Wagoner’s compensation is still being reviewed and he might have to negotiate with the company’s board to access the money.
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