Feb 20, 2010
Former CEO Fritz Henderson now consults GM at $2,954 an hour
If you think paying your auto mechanic $80 an hour is pricey, consider what General Motors is shelling out for its former CEO to work as a consultant.
Former CEO Fritz Henderson, who was forced out in December, will work 20 hours a month and get $59,090 — or $2,954 an hour.
That alone was a surprise, but so was the pay of the guy hired to replace him.
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"The new CEO of GM, Ed whitacre, is receiving a pay package worth about $9 million. His paycheck alone is $1.7 million, the company reported in a corporate filing, as reported by the Associated Press. The package is almost twice the amount that Henderson was paid before he was forced out.
The AP quotes GM spokeswoman Renee Rashid-Merem as saying Whitacre’s pay is higher than Henderson’s because of his previous CEO experience:
"Ed is a long-serving veteran CEO and chairman, and while his package is higher than Fritz’s, it is significantly lower than that of our peer companies," Rashid-Merem said.
But unlike Henderson, Whitacre had no previous automotive experience. Fritz did a lot of the dirty work of closing plants and cleaning up the balance sheet, leaving Whitacre to take over a reformed GM in a dark hour with nothing but upside after a government bailout that left taxpayers with a big ownership stake.
And Drive On previously noted the warnings of at least one corporate pay expert that Whitacre is known for stepping up the trough.