Saturday, February 28, 2009

THE AUTO INDUSTRY BAILOUT - $11.6 Million Awarded to Alvaro de Molina - the CEO of GMAC

It's time I expressed my opinion about these CEO's and their compensation plans.

Who else thinks that if a company loses billions, the CEO should get NOTHING!!!

This makes me sick.

Auto financier GMAC LLC, the recipient of a $6 billion federal bailout in December, today said CEO Alvaro de Molina was awarded $11.62 million of compensation in 2008 -- which doubled his total compensation from 2007.

Package included $2.3 million in use of corporate jet.

De Molina was awarded a $1.2 million salary, $5.81 million of stock awards and $4.8 million of other compensation, offset by option awards of negative $194,000, reflecting the application of an accounting standard.

GMAC said de Molina's compensation was $4.93 million in 2007. He became CEO on Sept. 5 of that year.

GMAC has in recent quarters suffered operating losses in its auto and mortgage units, but in December won its government bailout, as well as bank holding company status that allows it to tap lower-cost funding.

GMAC reported de Molina's compensation in a summary table included in its annual report filed with the U.S. Securities and Exchange Commission.

Differing calculations:

Some pay consultants and governance experts tabulate executive pay differently, saying the summary total may be imperfect because it counts options and stock as part of pay when they vest rather than when they are awarded.

About $2.26 million of de Molina's compensation came from the use of corporate aircraft. GMAC said it no longer provides aircraft for business or personal use.

The bailout required private equity firm Cerberus Capital Management LP and General Motors to slash their respective 51 percent and 49 percent stakes in the Detroit-based lender.

AFI's take on this:

A MONKEY could come in as the CEO and cause a company to lose billions of dollars. What do we need these people for?

Actually, I am glad that the public is becomming more aware of this insanity. Maybe if we makes enough noise, things could change for the future.

Oh well, Obama is the President. The waters will recede and all will be made whole.


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1 comment:

Imee Rocks said...

As a person who likes cars, I at first thought the auto industry bailout would help the auto industry, not people like de Molina. What will become of the auto industry and the Big Three? Dear Mr. President, please help.