Exit Package for Wagoner in Works

[Z-06]

[source: Wall Street Journal]

Exit Package for Wagoner in Works

Pension Plan for GM's Ousted CEO Remains Delicate Issue Amid U.S. Rescue

By SHARON TERLEP

Rick Wagoner, who is still employed by General Motors Corp. almost four months after his ouster as chief executive, will learn "very soon" when he'll be cut loose from the company and what he'll receive as an exit package, an Obama administration official said Wednesday.

Mr. Wagoner, forced out of his job by President Barack Obama amid a federal rescue, remains on GM's payroll making $1 a year and receiving the same benefits afforded to him during his tenure as chief executive.

GM is keeping Mr. Wagoner on staff -- albeit only technically -- as the government decides on pay and benefit criteria for the company's top officers, obligations that will be the responsibility of the new GM once it emerges from bankruptcy protection, company spokeswoman Julie Gibson said.

Ms. Gibson said pay and benefit packages for executives in post-bankruptcy GM are still being worked out by the Treasury Department and won't be determined until after the company exits Chapter 11.

Mr. Wagoner's pay is a delicate issue for GM, living on federal funds as it prepares for a second life as a government-owned car company. GM and Treasury want to avoid the criticism other government-dependent companies faced over rich pay packages to top executives.

Mr. Wagoner, who agreed to work for $1 a year as part of his fight to win federal funding, could be eligible for pensions that were worth around $20 million, according a regulatory filing at the end of 2008. The amount includes benefits accumulated over Mr. Wagoner's 32 years at GM.

The benefits are in a salaried pension plan and a separate pension-like plan for executives. GM can't unilaterally change the qualified salaried plan, but $19 million of Mr. Wagoner's $20 million in benefits are in the executive retirement plan, which the company is free to alter.

The U.S. government will become majority owner of the post-bankruptcy GM, to be called General Motors Co.

Executives who were already in retirement when GM entered bankruptcy protection face a different scenario than Mr. Wagoner and GM's currently employed leaders. They will take deep cuts in their medical benefits, life insurance plans and pensions as part of GM's bankruptcy reorganization under changes rolled out last month.

[Satty]

Give him $20 and a bus ticket.

[aaaantoine]

$1 a year... Wait a minute, that's below minimum wage!

What's that, like 6 minutes worth?

[SAmadei]

100 billion dollars... on a post dated check from "Old GM" the day after the BK is finished.

[Daryl Z71]

5 Bucks and a swift kick in the ass.

[Intrepidation]

A G8 ST...oh wait.

[FAPTurbo]

How about a 2009 Chevrolet Impala LS, so on the drive home he can maybe see just how awesome his tenure was. Probably cheaper for GM than the 20 bucks and bus ticket, anyways.

[Intrepidation]

How about a 2009 Chevrolet Impala LS, so on the drive home he can maybe see just how awesome his tenure was. Probably cheaper for GM than the 20 bucks and bus ticket, anyways.

I'll see your Impala and raise you an Pontiac G3.