Chrysler Pays Out $30m in Exec Bonuses

More of the Marie Antoinette syndrome

Chrysler Pays Out $30m in Exec Bonuses
http://tinyurl.com/5ayctq

Editor’s note: Comments on this story have been temporarily disabled.
No, not our story. The Detroit Free Press article revealing that
“Chrysler is in the awkward position of paying about $30 million in
retention bonuses to keep top executives while the company cuts
thousands of jobs.” Yeah, don’t you hate it when that happens? The Freep
immediately counters with the ameliorating fact (not) that “Chrysler
owes the bonuses under its contracts with about 50 executives, based on
a retention incentive plan crafted early last year by former German
parent DaimlerChrysler, when it was preparing to sell the Chrysler
unit.” Ohhhh, so that’s alright then. Well, not with Freep readers,
who’ve jammed the e-switchboard. Either that or the Freep can’t delete
the flamers fast enough. Or they simply don’t want to allow their
readers to express their outrage, for reasons that we can only guess
(cough advertising cough). Anyway, damage control! “Nancy Rae, Chrysler
executive vice president for human resources and communications, said
the move made sense at the time to ensure potential buyers that key
Chrysler executives would remain in place after a sale. She acknowledged
that the bonuses could be seen as controversial now.” Yeah, no shit.
Anyway, let’s name some names, shall we?

“Documents obtained by the Free Press [you go girl!] show that at least
six Chrysler executives are due to receive bonuses of more than $1
million apiece to stay through August 2009, the two-year anniversary
mark of when private equity firm Cerberus Capital Management bought an
80.1% stake in Chrysler.

Those promised the largest retention bonuses:

• Frank Ewasyshyn, executive vice president, manufacturing, $1.89 million.

• Frank Klegon, executive vice president, product development, $1.8 million.

• Nancy Rae [yes, the same Rae that's defending the payouts], $1.66 million.

• Simon Boag, president, Mopar/global service and parts, $1.65 million.

• Steven Landry, executive vice president, North American sales, $1.63
million.

• Michael Manley, executive vice president, international sales,
marketing and business development, $1.53 million.

The bonus sizes ranged from a high of Ewasyshyn’s $1.89 million down to
$200,000. The agreements provided for payments of 25% of the bonuses in
February 2008 — which were made on schedule — and for the remaining 75%
to be paid in August 2009.” [thanks to AUTOEMPLOYEEFORNOW for the link]
The Detroit Free Press
http://www.freep.com/article/20081113/BUSINESS01/311130002