The big payoff, GM execs awarded millions in stock

Discussion in 'Politics, Religion, Social Issues' started by Shivetya, Jun 8, 2010.

  1. Shivetya macrumors 65816

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    #1
    http://www.thedetroitbureau.com/2010/06/top-gm-execs-awarded-millions-in-stock/

    A dozen top General Motors executives will share millions in a potential stock bonanza added to their base pay, the automaker revealed Monday in Security and Exchange Commission filings.


    Figuring thirteen million dollars of value here, sorry but I don't think it should occur. They are operating under the largess of the American taxpayer. All funds used to pay off old GM and fund new GM should be the first consideration, especially those defrauded of their rightful debts.
     
  2. obeygiant macrumors 68040

    obeygiant

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    If I could get into GM stock I would. Its got nowhere to go but up.
     
  3. quagmire macrumors 603

    quagmire

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    GM is not even using taxpayer money to hand this money out( unlike the banks and co), and we still have people complaining....... The executives are simply getting stock options once the IPO is issued like every other American executive has. The money they will get is dependent on the value of new GM's stock. So if they suck at doing their job, they won't get much money when they sell the shares.

    The bondholders from old GM have a 10% share in new GM so they will get money when the IPO is issued and they decide to sell their shares. The money the government gave to GM will be repaid when they sell their 61% share in GM. This event does not change anything.
     
  4. Zombie Acorn macrumors 65816

    Zombie Acorn

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    If tax payer money is used to prop up your business and you expect to get even more government loans (which is the whole reason they paid back their previous loan, using tax payer money to do so iirc) you had better make sure the US tax payer is made whole before you start handing out millions in bonuses.
     
  5. niuniu macrumors 68020

    niuniu

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    As long as they're paying back their loan and and have restructured their business so that it's stable, profitable and growing I guess it's fine.

    I'd have much preferred to see them make new contracts and employ people with that money. Or instead of giving the 12 those stock options - give the stock to the workers, or give them a bonus of some sort - that would be a lot easier to stomach..

    The other problem of course is that we may just be going over the same behaviour that led to companies going bankrupt in the first place - greed at the top.
     
  6. rdowns macrumors Penryn

    rdowns

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    I'm fine with it (GM needs to pay to retain good people)as long as the option price is considerably above the market price when GM issues stock.
     
  7. Zombie Acorn macrumors 65816

    Zombie Acorn

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    Which is the whole problem with government bailing companies out, that approves this type of greed driven business.
     
  8. mcrain macrumors 68000

    mcrain

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    Personally, I'd like to see the bonuses/options issued after the executives have done more to deserve them, however, because we are talking about options, and SEC filings, this was probably a decision made more by their lawyers and accountants than greed.

    By the way, remember when people were running around complaining about the government and toyota recalls? I seem to remember people complaining that the government's ownership in GM and Chrysler tainted their vision.

    Anyone else see the large recalls of both GM and Chrysler vehicles. Still think the government can't do its job merely because it took an ownership interest in the car companies so as to protect the taxpayer's interests?
     
  9. quagmire macrumors 603

    quagmire

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    But, nothing has changed. The government, bondholders of old GM, and UAW VEBA trust will get the same money when they sell their shares even with this stock option move. It doesn't change anything. You'll get the same amount of your money back with or without these stock options.

    The loans they are getting now are not a loan to shore up their business, but loans that every other automaker can apply for( Ford is getting it) to help build green cars.
     
  10. Zombie Acorn macrumors 65816

    Zombie Acorn

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    We'll see if they get taken to capital hill and get bitched at like Toyota. Congress loved grandstanding then, lets see if they do it again.
     
  11. quagmire macrumors 603

    quagmire

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    If they hid the defects from the NHTSA, then they would. But, there is no evidence of that so far. The issue Congress grilled Toyota on was not on the recall itself, but the fact they hid it from the NHTSA and knew about it for at least 4 years( even though the recall only affects 2007 models and newer, we have had cases of older vehicles to SUA).
     
  12. mcrain macrumors 68000

    mcrain

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    #12
    Giggity giggity goo, that's right! +1
     

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