Exec compensation -- GM new chief's pay, Henderson's "consulting" gig, etc.

Discussion in 'Politics, Religion, Social Issues' started by mkrishnan, Feb 20, 2010.

  1. mkrishnan Moderator emeritus

    mkrishnan

    Joined:
    Jan 9, 2004
    Location:
    Grand Rapids, MI, USA
    #1
    Henderson:

    http://www.bloggingstocks.com/2010/02/20/59-090-per-month-for-20-hours-of-fritz-henderson/

    There are lots of other references on this, but in essence, a GM division has gotten approval to hire the person the government removed from the CEO office, and not only use him as a consultant, but pay him $60k/mo for 20 hours per month of services. Forget the comparison to working class labor. When I worked in management consulting, the bill rate for a partner at a major management consulting firm was in the area of $700/hr. It's been a few years, but even if it's $1100-1200, isn't it kind of sad that the person you had to kick out of the company is being paid almost three times that much on an hourly basis? For what? One hopes the plan is that Henderson spends each of the 20 hours a month coming up with the best ideas he can, and then GM does anything but what he suggests. :rolleyes:

    Up next, Whitacre, the AT&T-bred replacement, has gotten approval for a pay package worth $9M, including $1.7M in cash -- I'm missing the reference now, but I believe the cash package is almost twice the amount of cash Henderson received.

    http://online.wsj.com/article/BT-CO-20100219-713250.html?mod=WSJ_latestheadlines

    http://www.financialadvisory.com/ar...e-lands-9-million-in-pay-where-s-the-outrage/

    Galling is this comment:

    Finally, closer to home for me, I used to work for Visteon, a spinoff of Ford that essentially consisted of an agglomeration of a few profitable and innovative supplier divisions of Ford with a bunch of crap that was no longer in any position to make money.

    Visteon went into bankruptcy some time after I left, and is nonetheless brazen in its attempts at providing high compensation to executives:

    http://www.freep.com/article/201002.../BUSINESS01/Judge-approves-Visteon-bonus-plan

    Questionable here is:

    Now I do understand that the excesses of the banking industry are far more egregious, I believe firmly that we need a domestic auto industry, and I think it's worth it to save GM (but not Chrysler). However... am I not right to be annoyed by the job the government is doing here? Has it become completely absurd that a company be asked to engage in any kind of common sense whatsoever?
     
  2. Eraserhead macrumors G4

    Eraserhead

    Joined:
    Nov 3, 2005
    Location:
    UK
    #2
    This does seem more than a little outrageous. Even $1000/hour (that's like $7000/day or $1.5 million/year) seems pretty damn high.
     
  3. skunk macrumors G4

    skunk

    Joined:
    Jun 29, 2002
    Location:
    Republic of Ukistan
    #3
    In this little town it was £1,000 per hour in 2004. Your man is being shamefully under-compensated.

    Parasitism isn't cheap, you know.
     
  4. Eraserhead macrumors G4

    Eraserhead

    Joined:
    Nov 3, 2005
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    #4
    And at the time that was like $2000/hour.

    Jesus christ. And not even for a very good bad woman.
     
  5. Zombie Acorn macrumors 65816

    Zombie Acorn

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    Feb 2, 2009
    Location:
    Toronto, Ontario
    #5
    GM doesn't have to hire him. The article is talking as if they are being forced with death to hire this man.
     
  6. mkrishnan thread starter Moderator emeritus

    mkrishnan

    Joined:
    Jan 9, 2004
    Location:
    Grand Rapids, MI, USA
    #6
    Having worked with GM people, a big part of the problem is that they frequently see situations this way -- they feel as if they have no option but to do something completely mediocre, and they push with panic and frenzy to make it happen because they perceive dire consequences if they do not. They just don't get what better options would look like. I think that's a part of their corporate culture that needs to be fixed if they're going to survive.

    And, the government oversight ought to be helping them put some kind of brake on this behavior.
     
  7. Zombie Acorn macrumors 65816

    Zombie Acorn

    Joined:
    Feb 2, 2009
    Location:
    Toronto, Ontario
    #7
    Sounds oddly familiar to another entity that is discussed on here quite a bit.

    I don't understand why Henderson is getting demonized this go around, how many people here went to their last interview and took a lower amount than what you were offered?
     

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