No hard feelings on slashing pay; GM's CEO calls government cuts 'fair'; Bulk of compensation to depend on performance.Byline: Ken Thomas; The Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. WASHINGTON -- General Motors CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Fritz fritz n. Informal A condition in which something does not work properly: Our television is on the fritz. [Perhaps from German Fritz Henderson said Wednesday that government-imposed cuts to his own salary, and the pay of other executives at seven companies that received taxpayer money, were "fair" and "thoughtful." Henderson was among executives who will see their base salaries slashed slash v. slashed, slash·ing, slash·es v.tr. 1. To cut or form by cutting with forceful sweeping strokes: slash a path through the underbrush. 2. under a plan by Kenneth Feinberg Kenneth Feinberg is a Washington, D.C. attorney specializing in mediation and alternative dispute resolution who was appointed Special Master of the U.S. Government's September 11th Victim Compensation Fund. , the Obama administration's "pay czar." Henderson, between meetings with lawmakers on Capitol Capitol, seat of the U.S. Congress Capitol, seat of the U.S. government at Washington, D.C. It is the city's dominating monument, built on an elevated site that was chosen by George Washington in consultation with Major Pierre L'Enfant. Hill, said the changes were "tough, but the situation is tough." Feinberg said last week he had ordered the seven companies to slash the base salaries of their top executives by an average of 90 percent and cut total compensation -- cash, stock and perks perk 1 v. perked, perk·ing, perks v.intr. 1. To stick up or jut out: dogs' ears that perk. 2. To carry oneself in a lively and jaunty manner. -- in half. GM and Chrysler are among the companies that received government funds. Henderson's base salary was cut 30 percent to about $1.3 million earlier this year when GM accepted government loans. He received compensation valued at about $8.7 million in 2008, but much of it included stock and options now nearly worthless due to GM's bankruptcy filing. Under Feinberg's plan, Henderson's compensation package is expected to be nearly $5.5 million, including a cash salary of $950,000. The bulk of his compensation will depend on the performance of GM's stock when it becomes a public company again. "We're not public yet but we will be and if we do our job that stock is going to have real value," Henderson said. "We thought it was fair. We thought it was thoughtful." Also Wednesday, a person briefed on GM's finances said the automaker will announce later this week that it will draw $2.5 billion of U.S. funds from an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. account to pay the cost of buying a chunk of troubled parts supplier Delphi Corp. GM has agreed to pay several billion dollars to fund Delphi's emergence from bankruptcy protection by buying an equity stake in a new Delphi, purchasing Delphi's global steering business and several of its factories. Details will be disclosed in a filing today or Friday with the Securities and Exchange Commission, said the person, who asked not to be identified because the paperwork has not been filed. GM has received $52 billion from the federal government. It will draw on the roughly $33 billion in government money allocated to run GM after it left bankruptcy protection in July. Henderson told The Washington Post Wednesday that the company would not need further government aid. The automaker, which is 61 percent owned by the government, plans to release details of its finances next month. Troy, Mich.-based Delphi, once GM's parts division, was spun off in 1999 as a separate company but was forced to file for Chapter 11 in October 2005. It still produces about 10 percent of the parts used in GM's global manufacturing, and its components go into nearly all of GM's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. production lines. Information from Bloomberg News is included and AP Auto Writer Tom Krisher in Detroit contributed to this report. CAPTION(S): The Associated Press : General Motors CEO Fritz Henderson comments on imposed cuts to his salary and others. (0410310173) Copyright (c) 2009 Seattle Times Company, All Rights Reserved. |
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