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THURSDAY, NOVEMBER 26, 2009
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6

Chrysler Execs Dodge Bailout Pay Caps

As automaker cuts 3500, top employees will draw pay from Fiat

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(Newser) – Bankruptcy documents filed by Chrysler show that the chief executives of the bailed-out automaker will avoid executive pay restrictions—by declaring themselves employees of Fiat. Despite new Treasury rules that cap pay at $500,000 for execs whose firms received "extraordinary assistance," but Chrysler's top officers will be able to take pay from its new Italian owner. The automaker is nevertheless trying to cut 3,500 jobs, reports the Detroit Free Press.

Sergio Marchionne, Manager of Fiat car company, will become the chief executive of Chrysler after the US automaker emerges from bankruptcy, a Fiat spokesman confirmed Thursday, May 7, 2009.
Sergio Marchionne, Manager of Fiat car company, will become the chief executive of Chrysler after the US automaker emerges from bankruptcy, a Fiat spokesman confirmed Thursday, May 7, 2009.   (AP Photo/Michael Sohn, file)
Fiat cars are parked in the courtyard of a retailer in Milan, Italy, Thursday, May 7, 2009.
Fiat cars are parked in the courtyard of a retailer in Milan, Italy, Thursday, May 7, 2009.   (AP Photo/Luca Bruno)
General Motors CEO Fritz Henderson, seen Monday, May 4, 2009 in Detroit.
General Motors CEO Fritz Henderson, seen Monday, May 4, 2009 in Detroit.   (AP Photo/Carlos Osorio)
A customer looks at a Challenger R/T at a Chrysler dealership in Oakland, Calif.
A customer looks at a Challenger R/T at a Chrysler dealership in Oakland, Calif.   (AP Photo/Paul Sakuma, file)
In this Thursday, May 7, 2009 photo, Fiat logos are seen at a retailer in Milan, Italy.
In this Thursday, May 7, 2009 photo, Fiat logos are seen at a retailer in Milan, Italy.   (AP Photo/Antonio Calanni)
A Fiat logo is seen on a car retailer's window in Milan, Italy, Thursday, May 7, 2009.
A Fiat logo is seen on a car retailer's window in Milan, Italy, Thursday, May 7, 2009.   (AP Photo/Luca Bruno)
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6 comments
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BoZo
May 13, 09 7:12 AM CDT
SO can we take the bailout money back now? Reply
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nick
May 13, 09 8:24 AM CDT
Better keep paying these super-smart top executives the obnoxious salaries they demand and you think they deserve. Otherwise, they will leave leave. And, as you know, there are plenty of other companies out there seeking top executives who were part of a management team whose expertise guided their previous employer into bankruptcy. Reply
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+2
Reader3120
May 13, 09 10:14 AM CDT
Fiat gimmicks to avoid governamental rules!!---Where is the US cristally clear policies?--Italian entrepeneurs should not fit with "quakers" US policies , destroyed now forever--Isau Hernandez Reply
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-1
Yourself
May 13, 09 10:17 AM CDT
sickening. I still don't understand how the employees that are doing the ACTUAL work of building the cars haven't walked off the lines yet and demanded that the execs either leave their pay, or leave their jobs. They're obviously not that efficient or good at their job, otherwise they wouldn't be in this damn mess.. *sigh* Reply
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+1
TerrifiedCitizen
May 13, 09 2:22 PM CDT
Foreign investors have long understood the necessity of retaining American execs who understand the domestic market, labor guidelines, corporate laws and how the existing plants are set up. They can't make an efficient take-over without a certain amount of that assistance. The government should be able to supply that expertize but can't even figure out its own bureaucratic departments; nobody can... and the government hasn't the slightest clue how to run business. Reply
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