GM’s bid to replace CFO being complicated by salary restrictions

Posted: Oct 18, 2009
Filed under: GM, Industry News

Young, Ray

It was reported last month that General Motors CFO Ray Young is expected to leave the company in the coming weeks. While GM hasn’t confirmed anything yet, Reuters reports that sources told the publication that GM directors in September backed a plan for CFO Ray Young to leave the company.

However, The Wall Street Journal said that a bid to find a replacement for Young is being complicated by pay restrictions imposed on companies that received a large sum of U.S. government bailouts.

According to insiders, GM executives met with U.S. Treasury pay czar Kenneth Fienberg who said that the automaker would be able to offer a significant amount of stock and no more than $1 million in annual salary.

Spokesman Tom Wilkinson declined to comment but said that the automaker is “consistently said that one challenge to filling any position from outside might be the pay restrictions.”

- By: Omar Rana

Source: Reuters

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  • zermatt
    After B of A CEO Ken Lewis had his 2009 salary brought to ZERO and told that he will not receive a bonus for 2009 (if he deserves one is a different story), it would be difficult to attract anyone of quality to a government controlled company.

    Maybe the Pay Czar and Obama can institute a Draft for executives and force people to serve in the Government Corporate Army. I would go to Canada before I would serve in the GCA.
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