Wagoner's golden parachute lacks luster
General Motors has no employment contract with boss Rick Wagoner, who has been pushed out by the White House. At least there wasn't one as of the company's last proxy statement. Thus there appears to be no automatic pinata of goodies set to rain down as Wagoner leaves.
From GM's proxy statement:
We do not have any employment agreements with Messrs. Wagoner, Henderson, Cowger, or Stephens that provide them with special compensation arrangements.In addition, GM does not maintain any plan providing benefits tied to a change-in-control of the Corporation, although each of our incentive plans does contain change-in-control provisions that provide for protection and acceleration of incentive payments under certain conditions as disclosed in the “Potential Payments Upon Termination or Change in Control” section beginning on page 47.
However, the board can still hand Wagoner a parting package. From its Executive Officer Severance Policy:
On the rare occasion when an executive officer is removed, the board exercises its business judgment in approving an appropriate separation arrangement, if any, in light of all relevant circumstances including, but not limited to, the individual's term of employment, past contributions and accomplishments, and reasons for separation from the company. The board, for example, might give particular consideration to a highly successful, long-serving executive who elected to separate for health or similarly compelling personal reasons.
But if it's especially big they have to ask shareholders for approval, which would be inconceivable in this environment. From the proxy:
Executive Officer Severance PolicyGeneral Motors executive officers are generally at-will employees who serve at the discretion of the Board. In early 2005, GM adopted a policy applicable to executive officers requiring stockholder approval of any severance benefits if:
• The executive’s employment was terminated prior to retirement; and
• The present value of the proposed severance benefits would exceed 2.99 times the sum of the executive’s annual base salary and target annual incentive.
Comments
When the auto industry has huge overheads for health insurance for the thousands of personnel , and even more for retirees that are receiving health benefits. It is no wonder their businesses can't make a decent profit. Their saddled with billions of dollars from a health industry, that have questionable practices. Isn't that why we voted for President Obama , to bring in a single payer health care system? Not with what we are going to get--auditors, not doctors in wealthy insurance companies dishing out limited services. Being a moderate voter I think one of the most important issues to get Americans back to work is Health care? Large and small businesses in this America have to negotiate with the middle man--Insurance companies!
They are the inter-mediator, we can well do without? If car manufacturing companies didn't have to pay extra for health care for it's hundreds of thousands of workers. Then we would be on a level-playing-field, with our foreign competitors who are subsidized by their governments? Why is it European countries like France, United Kingdom have a single payer system through the government that--WORKS! The usual critics have everything to gain, and so much more to lose--they will put every obstacle in the way of Universal health care. Before Britain was invaded by immigrants under the European Common Market, my family had excellent Social health care.
Every employer and every worker paid into the system and the outcome insured you of hospitalization, doctor visits, specialists, eye and teeth care. Then of course the majority of upper class Americans don't like the idea, because they can well afford the co-pays, premiums that the insurance companies add to their exorbitant fees. But then they get the best service, including home visits. The mechanics of health care in the US is no different to England's, including sitting in the waiting room and seeing the physician. If you needed to see a specialist you was referred by letter. The Democrats will state they are working for the American people, but for some that's an outright fallacy? It's unlikely we will never get rid of the greedy insurance companies--until we have taxpayer Campaign contributions for many corrupt politicians. Same with E-Verify for US Workers, because big business didn't like being cut off from cheap illegal labor. Of course the special interest lobbyists, will distort the truth to get voters to deny the 47 uninsured Americans (NOT ILLEGAL ALIENS) peace of mind--for--OUR--families and children.
Posted by: Brittancus | March 30, 2009 12:26 PM
So the Board can offer a package at its discretion. Should be interesting as package if offered will be all tax payer money. So if Board offers a package (remember bonus last year to Wagnor was 14MM) should the Board be asked to leave?
Posted by: Scott Macdonald | March 31, 2009 1:14 PM