That segment has taken a dramatic and sudden downturn recently as aresult of rising gas prices; a severe problem for GM, which placedtheir new truck line at the top o
f their priority list two years ago, at the expense of any conceptual or pre-production car models. As a result of this, market analysts downgraded GMs stock from "hold" to "sell" this month, saying that the "leading indicators are increasingly pointing to a tough outlook."
Earlier this year Wagoner himself made headlines for doing his part to lighten GM's load; taking a 46 percent pay cut in late April. As well, GM's board of directors withheld any and all bonuses from Wagoner and the other four top executives, although they did praise Wagoner's direction and steady leadership performance throughout 2005. Wagoner said the pay cut was the most difficult in the automaker's 98-year history, although mysteriously enough his base salary remained unchanged over last year's, sitting at a steady $2.2 million USD. Additionally, Wagoner received stock options for 400,000 shares with a total value of $2.9 million USD (last year he received the same amount of stock options, although the valuation was much higher at $5.1 million USD), as well as $395,000 USD compensation for standard out-of-pocket expenses, such as security measures, the use of the company aircraft, and contributions to a savings plan. All told his pay this year will be just shy of $5.5 million USD. Difficult indeed.
 |
| Wagoner took a pay cut in April to the apparent effect of 46 percent, although his earnigns this year will still be close to $5.5 million USD. (Photo: General Motors of Canada) |
Earlier this year Wagoner himself made headlines for doing his part to lighten GM's load; taking a 46 percent pay cut in late April. As well, GM's board of directors withheld any and all bonuses from Wagoner and the other four top executives, although they did praise Wagoner's direction and steady leadership performance throughout 2005. Wagoner said the pay cut was the most difficult in the automaker's 98-year history, although mysteriously enough his base salary remained unchanged over last year's, sitting at a steady $2.2 million USD. Additionally, Wagoner received stock options for 400,000 shares with a total value of $2.9 million USD (last year he received the same amount of stock options, although the valuation was much higher at $5.1 million USD), as well as $395,000 USD compensation for standard out-of-pocket expenses, such as security measures, the use of the company aircraft, and contributions to a savings plan. All told his pay this year will be just shy of $5.5 million USD. Difficult indeed.
Article Gallery