So you think you have what it takes to become Chairman and CEO of Chrysler LLC and replace the soon-to-be-former CEO Bob Nardelli. Well, you better be ready to have your salary capped without the likeliness of receiving any additional compensation.
Whoever replaces Bob Nardelli will have the tough job of rebuilding Chrysler with Fiat technology, U.S. government money and a salary that may be capped at $500,000.
The $8.08 billion in aid being given to Chrysler for its bankruptcy and recovery efforts by the U.S. government is one of the first to fall under the U.S. Department of Treasury’s tougher rules for executive compensation.
The rules, set by Treasury Secretary Timothy Geithner, would cap the new CEO’s salary at $500,000 and since Chrysler will be privately held for years to come (by Fiat, the UAW retiree health-car and the U.S. and Canadian governments) there is no chance of any shares being made available for additional compensation.
Nardelli will be leaving the company as soon as Chrysler comes out of bankruptcy. He had agreed to a $1 a year salary as CEO of Chrysler.
– By: Omar Rana
Source: Free Press