Wagoner Gets a Cool 20 million
Rick Wagoner will likely reject his "Salaried Retirement Plan" and "Executive Retirement Plan" valued at over 20 million because of the scrutiny he would likely receive. It's not like he needs the money...it is estimated he made over 60 million in salary during his tenure with GM. But the fact is that he deserves the money. A contract is a contract. I'm not sure why we as Americans have started getting outraged over companies honoring contracts made before things went bad. If Wagoner decides to return the money, then good for him. But it SHOULDN"T be expected or forced upon him. This whole situation should teach us that huge compensations should be based on long term results, not short term gains.
If we start voiding contracts after the fact we have a long and scary future. Business has prospered in America partially because of our legal system and the fact that if you make a contract it can be legally enforced. How about we keep it that way.
2 comments:
Doug, contracts are not black letter law, there are many ways to void a contract. Furthermore, did you read his particular contract? While he might have been guaranteed the money there might have been a clause or two regarding things like: "when shit hits the fan" how can you expect someone to pocket 20 million dollars when the company is going down. He should not take the money, let the company keep it, and when things get back to normal get it plus some. Those are just one MANN's thoughts
I'm not arguing whether taking the money is right or wrong. I'm arguing that contracts should be honored and i'm basing my comments on the assumption that there are no "shit hits the fan" clauses. I assume his retirement package is pretty set in stone. This is a simple resignation. He didn't do anything illegal or immoral that would raise any red flags. He simply resigned/retired from his current position.
Furthermore, if they wanted to void his contract they should file for bankruptcy (which they will probably be forced to do in the coming months). They would have a better chance of renegotiating his retirement contract AND the union contracts which is at the root of their problems.
Rick Wagoner did more for restructuring the Union contracts over the last 5 years than any other CEO at GM possibly ever! It's a nightmare out there in the financial markets but it shouldn't be used as an excuse to change what we believe in or our legal system.
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