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Chrysler CEO will put pay restrictions to test

Discussion in 'Political Zone' started by WoodysGirl, Feb 8, 2009.

  1. WoodysGirl

    WoodysGirl Everything is everything... Staff Member

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    Feb. 8, 2009, 1:57AM

    WASHINGTON — The first test case of the Obama administration’s tougher executive compensation standards may very well be the man who a few years ago was a symbol of corporate excess: Robert Nardelli.

    In 2007, Nardelli was ousted as chief executive of Home Depot after a series of strategic moves failed to boost the firm’s stock price. Much to the outrage of shareholders and lawmakers, the company pushed Robert Nardelli out the door with a $210 million golden parachute.

    Now, Nardelli, the chief executive of Chrysler, is seeking a $3 billion loan from the federal government by March 31, on top of $4 billion that the automaker received in December.

    The new request for federal rescue funds would likely trigger the executive pay limits announced by President Barack Obama this week, an administration official said. Nardelli, as well as the other senior executives of Chrysler, would be limited to $500,000 in total compensation. Any amount above that could only come in the form of restricted stock that cannot be sold until the government loans are repaid.

    These restrictions only apply to firms that receive special assistance from the government. Companies that already got federal aid are also exempt. So executives of General Motors, which received a $13.4 billion aid package from the Treasury Department last year, would not face the new pay limits unless it seeks additional aid.

    The goal of the administration’s policy was to tie executive compensation to the long-term performance of a firm — the very criticism that dogged Nardelli’s tenure at Home Depot.

    Chrysler’s spokesman Stuart Schorr said the company’s executives are willing to abide by the administration’s new pay limits in order to get government help.

    The firm is not required to reveal Nardelli’s pay arrangements.

    The company would also have to craft a “name and shame” policy that discloses how executives spend company funds in holiday parties, corporate jets and other luxury items.

    Such restrictions will not apply to the majority of firms seeking government aid — only those such as Chrysler that receive exceptional assistance to survive.

  2. ThaBigP

    ThaBigP New Member

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    Here's what I want to see...

    If/when GE has to be bailed out, will Keith Oberman (sp?) have his $7mil salary cut down to $500k? He and many others on that show are listed as "executives" in the NBC/MSNBC news company, owned by GE.

    If the Hollywood bailout money is still in the stimulus bill (not sure if it is), will actors all be capped at $500,000 per year (not per picture, but per year).

    I guess the evidence of continued hypocricy and double standards will have to wait to be seen...
  3. DIAF

    DIAF DivaLover159

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    Keith Olberman is not an executive.
  4. sbark

    sbark Well-Known Member Zone Supporter

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    Barney Frank: TARP's comp curbs could be extended to all businesses
    Would be part of broader bill limiting hedge funds, credit-raters, and mortgage securitizers; 'deeply rooted anger'

    By Neil Roland
    February 3, 2009 ET

    Congress will consider legislation to extend some of the curbs on executive pay that now apply only to those banks receiving federal assistance, House Financial Services Committee Chairman Barney Frank said.

    “There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

    He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies.

    I need four: I hope he fails. Everybody thinks that's outrageous to say. What's unfair about my saying I hope liberalism fails? Were the liberals out there hoping Bush succeeded or were they out there trying to destroy him? Liberalism is our problem. It's what has gotten us dangerously close to the precipice. Why do I want more of it?"
  5. irvin4evs

    irvin4evs Benched

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    Rush Limbaugh is a moron.
  6. sbark

    sbark Well-Known Member Zone Supporter

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    totally un-emcumbered with facts.
  7. ThaBigP

    ThaBigP New Member

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    I like icecream. There. Now we've gotten all of our completely irrelevant call-outs out of the way...

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