GMAC (NYSE:GMA), the finance company jointly owned by General Motors (NYSE:GM) and Chrysler, paid its CEO more than $11 million in 2008 despite the company being virtually bankrupt and getting a $6 billion federal bailout package in December. Automotive News reports:
[CEO Alvaro] De Molina was awarded a $1.2 million salary, $5.81 million of stock awards and $4.8 million of other compensation, offset by option awards of negative $194,000, reflecting the application of an accounting standard.
GMAC said de Molina’s compensation was $4.93 million in 2007. He became CEO on Sept. 5 of that year.
And the beat goes on, as we continually hear that placing limitations on executive salary will prevent companies from recruiting the top executive talent. You know, the same top talent they have now, which has managed to run these companies into the ground.