GM & Chrysler Execs Will Receive A 25% Pay Cut

The US government has said that they will slash salaries of top-management employees at GM and Chrysler. The payment decrease will effect the two firms that received bailout funding to stay alive during rough times.

Alongside the payment cuts at the automaker companies, the financial businesses for the automakers also received a steep decrease in pay. It was said that compensation at Chrysler Financial was cut by around 56 percent, while GMAC execs found a 85% cut from their pay checks.

It was said that Chrysler CEO, Sergio Marchionne will not be effected by these changes, as he took no cash from Chrysler. The report did however say that all executives that remain on board will not be able to make more than $500,000, and this includes bonuses.

Although most employees received a pay decrease, it’s been hinted that GM CEO, Fritz Henderson might actually receive a pay increase. In fact, Henderson might actually earn cash and stock compensation up to $5.5 million.

Many on-lookers and critics have said that the price cuts cause too much government interference. However, this was all part of the deal when the firms signed the contract for money to fight off bankruptcy.

[s:worldcarfans]