The more I hear about this automaker bailout stuff, the more ridiculous it seems. A quick look at where some of the money these companies make has went previously:
1. Ford CEO Gets $18.5M upfront, $2M salary and an immediate payout of $18.5 million for taking the job in September 2006.(Ford lost $1.4 billion in the first half of 2006.)
2. GM lifts CEO salary to $2.2 M, translating to a 33% raise (The stock has dropped 10 percent since the start of the year and about 64 percent since Wagoner became CEO in June 2000. GM reported a record loss of $39 billion for 2007, its third consecutive net loss.)
3. Chrysler's new CEO declines to detail salary package (Chrysler lost $680 M last year.)
If a typical worker makes $30,000 per year, one Ford CEO equals 68 regular workers. One GM CEO equals 75 regular workers.
Why can't we ever fix the problem before throwing money at it? Even people who know something about money are agreeing with me here. Even some of the auto workers themselves aren't for bailing out these guys.
It must have been a sad private jet ride home for those CEOs when they were not granted bailout money by Capital Hill but as my coworker said, "I wish I could make $2 million for being a complete failure."
(Thanks to Mike for some of these links!)