GM cuts high-level executive pensions, Rick Wagoner to hurt the most

General Motors CEO Fritz Henderson confirmed Friday that pensioners whose yearly payments exceed $100,000 will see a dramatic reduction in their pensions – those whose yearly payments are less than $100,000 will lose nothing. GM’s former CEO Rick Wagoner, who was fired by President Barack Obama, is expected to lose $15 million

Rick Wagoner, 56 and a 32-year veteran of GM, had a pension with accrued benefits totaling $22.1 million as of Dec. 31. The pension was to be paid in five annual payments of $4.52 million.

The former GM would now lose $2.99 million a year for five years – almost $15 million.

The pension announcement comes as another high-profile GM executive, Global Purchasing Group Vice President Bo Andersson, announced he is leaving. Andersson, 53, will pursue other career opportunities, joining Vice Chairman Bob Luz and Cadillac Chief Mark McNabb, who resigned last month.

– By: Omar Rana

Source: Detroit News