I'm confused about this administration

They talk about all the obscene bonuses paid to some CEO's, but they pay their's more than the CEO they ran off? Plus they re-hire the old CEO as a consultant? Here's the story.......

http://finance.yahoo.com/news/GM-CEO-Whitacre-receives-9M-apf-362235582.html?x=0&.v=5

Excerpt:NEW YORK (AP) -- General Motors Co. CEO Ed Whitacre will receive a salary of $1.7 million this year, plus stock awards that will bring his total pay package to $9 million at a later date, the automaker said Friday.

In a surprise announcement, GM also said former CEO Fritz Henderson has been rehired as a consultant. Henderson, who was forced out of the job in December, will work 20 hours a month and will be paid $59,090 a month, the company said.

Whitacre's total compensation is larger than Henderson's when he was CEO. Henderson received a total pay package worth nearly $5.5 million.

Whitacre's pay package includes a cash salary of $1.7 million that took effect Jan. 1. It also includes $5.3 million in stock awarded in increments starting in 2012, plus another stock award worth $2 million. The details, including the timing, of the $2 million stock award still need to be worked out, a GM spokeswoman said.

GM is 60 percent owned by the federal government and has received $52 billion in federal aid. The company plans to repay as much of the money as possible by issuing stock to the public, possibly as early as this year.

Initially named interim CEO by the board of directors in December, Whitacre was officially awarded the title in January. At the time, Whitacre, who is also chairman, said the main reason he was taking the job was to bring stability to the top of the struggling Detroit automaker.

GM spokeswoman Renee Rashid-Merem said Whitacre's pay is higher than Henderson's because of his previous CEO experience.

"Ed is a long-serving veteran CEO and chairman, and while his package is higher than Fritz's, it is significantly lower than that of our peer companies," Rashid-Merem said in an e-mail.

Henderson's re-enlistment at GM marks a surprise return for the former CEO. Whitacre announced Henderson's retirement at a hastily called news conference on Dec. 1, the day before Henderson was scheduled to give the keynote address at the Los Angeles Auto Show. GM sent Vice Chairman Bob Lutz as a last-minute replacement

 

This post is hidden to guests.
To view this post, please log in.
If you are not a member, you will need to sign up.

 

This post is hidden to guests.
To view this post, please log in.
If you are not a member, you will need to sign up.