Many well-respected automotive news websites such as Automotive News and Reuters, reported the eye-catching news of a salary cut for the Chairman and CEO of GM last week. It was reported that Wagoner would receive a 25% cut in his base salary for 2007. It all related to GM's cost-cutting movement to hopefully have a litle heavier pocket as a result.
CARSCOOP conducted a simple math equation to see if Wagoner REALLY got a reduction. GM reported that Wagoner's base salary for 2006 was $2.2 million while this year, it dropped 25% to $1.65 million.
Here's the turnaround though. While his base salary was $2.2 million, GM agreed to cut his pay by 50% on that same year by a deal made in February of the same year. As a result, his "pay check" was reduced 42% and got $1.28 million as a result. That still doesn't contradict to his base salary of that year. But, you get the idea. Therefore, Wagoner is actually getting 28.9% more than last year's "pay check", even though his contract doesn't indicate the change made last year. Kudos to CARSCOOP and Bloomberg for figuring it out.
[Source: CARSCOOP via Bloomberg]
Sunday, April 29, 2007
GM's Rick Wagoner getting a 29% INCREASE in salary for 2007, not a 25% CUT
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