Joining FoMoCo’s Alan Mulally and Chrysler LLC’s Bob Nardelli, GM’s Rick Wagoner has said that he will also accept a $1 a year salary if his company receives federal aid from Congress. GM also said that it will further reduce the number of executives and total compensation paid to senior leadership.
The largest domestic automaker said that the plan also requires changes in existing labor agreements, including job security provisions, paid time-off, and post-retirement health-care obligations. Common stock dividends will also remain suspended during the life of the loans.
GM said yesterday that it is requesting a total of $18 billion of credit line – $4 billion of which it needs by Dec. 31.