GMAC boss pockets $11.6 million
March 2, 2009 by Matt Brogan
GMAC, General Motors’ preferred finance division – may have had it tough during the economic slowdown but not so it seems for the company’s CEO Alvaro de Molina who pocketed US$11.62 million (A$18.06 million) in compensation last year.
De Molina’s final compensation figure was made up of $1.2 million in salary, $5.81 million in stock and $4.8 million in other compensation – plus an offset of $194,000. The total figure more than doubling his 2007 earnings of $4.93 million.
The extrodinary figure comes as a surprise to US tax-payers who recently chipped in US$6 billion to assist GMAC. But if it’s any consolation to them and the many hundreds GM employees losing their jobs amid the financial crisis, Mr de Molina won’t have access to the corporate jet in 2009 – a perk that cost GMAC $2.26 million last year.
Print it: 
Nothing short of obcene!
Yes it is Brett.
Whats more, “USA Today” announced that GM’s
revised debt is now 82 Billion dollars. I know, it’s only billions, that’s almost 1/10 of a trillion dollars, amazing isn’t it.
And oh yes, apparently at the first begging expedition to Washington their pension fund deficit had 11 billion dollars shaved of it, sure that was just an oversight though, surely it wouldn’t have been done on purpose…
Pathetic!
The US Government should just let GM collapse! The dumb as #### CEO’s of this company have been using the economic crisis as a nice conveinent excuse. This company has been in trouble since 2000, where the share price of GM started its first descent.
These sort of obscene salary packages are not limited to just auto related companies. I dont have too much of a problem with them when the companies they run are making money, but to pay someone tens of millions when you are losing money hand over fist and asking for goverment handouts is obscene. And more fool the govermnents for giving them money. The first condition of any handout should be no salary packages worth more than say… $1M?… or perhaps pay them their salary in Zimbabwean dollars.
Something needs to be done about these greedy people, the knob referred to in this article, that tart from Pacific Brands, the Mexican tool from Telstra, I could go on all day…
Congratulations MR De Molina’s you’re doing you bit to send G.M BANKRUPT!
Well Done I hope G.M has employed many more like you self!
Don’t get worked up into a frenzy about the $5.81 million in stock he has been given It will soon be worthless.
True Spitfire…very true…we can only hope ;)
Still though its amazing how these gits can run a compnay into the ground and still get paid….how does that work…come to think of it…I want a job like that….FAIL AND EARN MILLIONS!! YES!
This man sould be charged on some moral grounds. How can he eeven accept this when the once great GM is burnign before his eyes, something he probably had a hand in.
There is no doubt that this is a very sensitive issue at the moment, which the worlds media are reporting with all the usual hysteria and lack of measure.
In spite of this, its hard not to wonder about the very core beliefs and drivers of these captains of industry. It appears that there is simply no moral issue for them in driving a company to its knees, accepting taxpayer relief and paying themselves obscene amounts with other peoples tax dollars.
Business is business but these people border on pyschopathic in their apparent ignorance, greed and ability to insult their fellow human being.
I’m no socialist but I would imagine that this is the sort of massive social inequality which has brought about revolutions in the past…
You are right about the gits running the company into the ground Technofreak.
Do I feel sorry for the workers in the manufacturing plants? Of course I do.
In the US, it would seem that the wrong people are in jail.
Such corporate greed will continue unabated because nobody can stop them because they and their boardroom cronies set their own wages. I heard a good suggestion the other day that governments could create a special tax rate for all mega high earners like these greedy corporate scumbags. But then I suppose they would then just go and give themselves another increase to compensate.
I guess we can only hope for success in the blockade of Pacific Brands (and boycotting of their products) to show them how we really feel about their actions.
Fat Cats taking the cream. Rather like the nob who knackered the RBS in the UK and take a £630K annual pension oh and was knighted for services to banking.
This world sucks if you honest. Pay to be corrupt somehow.
Dlr1,
My thoughts exactlly.
I got no problem with it when their worth can be shown, but when his ship is about to sink, one would think the focus would shift slightly towards it.
It IS a shame that those that actually work the hardest get shafted by these losers! Could be that the workers will rise up again in the not so distant future and fix this crap!
Serioulsy, something has to be done to correct this crap from happening…I like the idea of the shareholders having a bigger say in corp salaries!
4.8 million in compensation? For what?
Severence of contract probably. You and I get a week or a months notice to quit the fat cats line their own pockets after writing their own contracts.
People like that didn’t get to the top by resting on their morals.