Chrysler leaders get $30 million in bonuses

Posted: Nov 15, 2008
Filed under: Chrysler, Industry News

“Chrysler leaders get millions” – a headline like that should definitely help the Detroit Big 3 get aid from Congress. A story with that very title ran on The Detroit Free Press yesterday stating that while the company slashes thousands of jobs, it is in an “awkward position of paying about $30 million in retentions bonuses to keep top executives.”

Under a contract with about 50 executives, Chrysler will pay out millions in bonuses to top-level executives based on a retention incentive plan introduced when it broke off from Daimler last year. Basically the idea at the time was to ensure any potential buyers that Chrysler’s key execs would remain with the company after a sale.

Of course the bonuses are being seen as controversial now. “We all would be smarter if we knew what we know now back in February of ‘07,” said Nancy Rae, executive vice president for human resources and communications. “Probably a lot of different decisions would be made.”

The new comes at a perfect time when chief executives from Chrysler, GM and FoMoCo are headed to Washington next week to testify before a House committee on a proposal for $25 billion in loans to help keep all three companies alive.

We’re just wondering if all these so-called “top-level” executives are really worth $30 million.

Related Posts:

  1. Marchionne: Chrysler in worse shape than he thought, targets 6 million in sales between Fiat/Chrysler
  2. Chrysler tried to sell Viper business for $10 million, had no takers
  3. Report: Chrysler Financial turned down $750 million in government loans over limits on executive pay
  4. No bonuses for GM executives
  5. Bonuses for every worker at Ford after $12.5 billion loss

  • 'jus look at these exec types! too old (& set in their ways). ultimately, their decision makings are to blame for their company failures.

    bring in fresh blood (ie. the innovative, young, vibrant Google-types), identify useless niche-only product lines (hint: v8s and trucks) and focus on practical, highly engineered, pro-environment, dynamic vehicles.
  • Kabluey
    I wanna be a robber baron.. lol..
  • moses blah
    OK..... let me get this straight Chrylser want to keep these so called "TOP EXECUTIVES" but they fail to bring the company out of red ink, consider the face that the asians manufacuters where bringing sales close to theirs and putting more quality in their cars. Did they not see the writing on the wall? of couse they did,

    But acted to slow or too stubborn to do anything about it "yeah chrysler, putting more plastic in ur interiors is key to quality and alot of people are going to certainly buy" when was the last time chrysler made a profit? but they are paying their board members $30million in bonues but then the hard working americans that manufacture their vehicles are getting their jobs cuts

    whats wrong with this picture.
  • Kumonga
    If they had any integrity @ all, they would give that $ back & save some jobs. I am sure that they get paid well as it is & could afford to do so ...
  • ty
    bye chrysler, seems like they're the ones going first
  • Oh look isn't that just cute, they are all in matching outfits..omg
  • What is wrong with this pciture OMG. Greed and big oil nearly ruined our economy and society. Guess greed and big oil are one in the same .Our last stimulus package cost 168 BILLION. It didn't do a thing to improve our economy. Not enough credit is being given to the role the record breaking cost of gas played in the downward spiral of our economy. We have so much available to us in the way of FREE energy sources such as wind and solar. We have modern technologies such as hybrid and electric plug in cars. Why don't we invest in America becoming energy independent. 168 billion would go a LONG way towards getting some of these things set up plus would create millions of badly needed new jobs. Jeff Wilson has a new book out called The Manhattan Project of 2009 Energy Independence NOW. I highly recommend this book for anyone worried about our economy and our dependence on foreign oil.
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