GM CEO To Continue Flying Private, Company Will Downsize Jet Fleet

From ABC News:

General Motors said today that it is putting two of its five corporate jets out of service because the planes are not being used enough. The top three executives at GM, however, will continue to use the private luxurious jets for all of their business and personal travel, despite a flurry of criticism over the perk following an ABC News report this week.

An ABC News investigation revealed that the top three automakers have together spent several hundred million dollars to buy, maintain, and operate a fleet of top-of-the-line private jets for their top executives.

Comments

[suemag]

I'm sure they could find smart people who would be willing to do these CEO's jobs for a mere fraction of what these guys get paid....

[Culturemaven]

It shouldn't take Congressional pressure to make the CEOs decide to downsize the luxury fleet. They should not have had the planes in the first place; and if they did have them, they should have sold them long ago, by their own decision. Duh.

[11907281]

I'm not sure if anyone realizes this but .... there are a lot more of us then there are of them! I think a full fledged "French Revolution" is in order.

[Samalabear]

Well, there's certainly not enough protests for what is going on. But as jobs go down more and more I see this as a real possibility.

[Lizaxyz]

We do need a revolution - for the people, by the people! Things are so out of whack! The money they are asking for is OUR money for god sake! If we have to make cutbacks then every corporate exec should be setting an example by cutting back on all of their exorbitant perks, bonuses and planes, if it means saving a job for someone else.

[Strywever]

Why do you think so many corporate execs have moved into gated communities? ;-)

[suemag]

There's an 85 year old man still getting a pension from one of the big 3. He's been collecting a pension longer than he worked for the company! None of the companies my husband or I have ever worked for had pensions, just 401k's- what's wrong with this picture?

[suemag]

Even this man thinks it is ridiculous and says he would give up his pension if anyone asked and if it would help the company survive.

[RichBixby]

You tell us, since you seem to think there IS something wrong...

[olderdem]

Doubtful that 401Ks existed when that 85 year old man retired.

[suemag]

true

[OkieIntellectual]

So are you saying we should all have pensions, or that we should burn the 85yr old at the stake for starting his career at a time when companies cared as much about their employees as they did about their bottom line?

[suemag]

Absolutely not- no one should be getting a pension like that. 401k's are fine. I'm saying this is why these companies are failing, they are paying pensions to people for too long and people are living longer so they're running out of money. Simple math. I don't fault this man, he's getting what he signed up for. But obviously something needs to change.

[InsideBrooklyn]

What's wrong with this picture is that you didn't get a pension nor did you or your husband work for a company that provided one. If the man is collecting a pension why fault him? Through what glass are you looking? Because you don't have a pension everyone else who has one or had one shouldn't? Spare me your strange situational ethics. . .

[suemag]

You're missing the point. Companies cannot go on paying pensions because people are living a lot longer than they used to. See below.

[fcsakes]

Are they even capable of getting it?

Has anyone asked how they can look a middle-class American taxpayer in the face and say her taxes should pay for his poor planning?

Let's get a couple of them on Oprah's show and ask.

[breezyholler]

These arrogant pigs have had it their way for so long ...they don't feel a need to 'get it'

[11907281]

They need to feel the soft touch of a guillotine!

[BoulderSue]

They don't get it, these CEOs, anymore than GWB ever got it

[curiousasheck]

Why can't these guys take a commercial flight?

Don't want to be stuck in the same seats as the unwashed?

[frantaylor]

When you have a plant full of employees twiddling their thumbs because the computer is down, that corporate jet can save a company a LOT of money.

[Bullwinkie]

yea, that jet flies around the tech team.

[ChristyH]

OMG... don't these guys get it..... ALL OF THE PERKS HAVE TO GO... SALARIES HAVE TO BE CUT - THE CEO SHOULD MAKE NO MORE THAN $400,000 in TOTAL COMPENSATION with every other "executive" making less (after all, $400,000 is what the President of the United States earns)..... no country clubs, no vacation retreats, no corporate jets (flying coach class could be a learning experience), no pension contributions - nothing..... then and only then should Congress think about giving a bailout..... AND their salaries should not increase UNTIL the company is solvent again......

[breezyholler]

Yes ChristyH ...these folks need to come back to reality !!!!

[orangepetal]

Very inconclusive information. These guys are possibly flying around the country on a daily basis. Flying is stressful. I believe their time has value as well as being sure that they are kept at a minimum comfort level so as to perform at the level required. Is this evil, I'm not going to judge. Will this exclusively bring down the company, I find it difficult to believe. The real issue is costs and product, I think it is wise to stay focused. I do believe there should be accountability for any misconduct. Why such high salaries and bonuses have become standard is baffling. Companies are supposed to save for a rainy day and keep updating the products and equipment.

[bujeeboo]

Please read this:
http://www.usnews.com/blogs/flowchart/2008/11/20/6-myths-about-gm-ford-and-chrysler.html

Some of may be eye-opening, if you can look at your own class envy with a jaundiced eye.

[BoulderSue]

bujeeboo: my heart bleeds! Haven't they heard of conferencing on the internet? Or Even chartering one small plane for all of them to get to Washington when they need to? They can't talk on commercials airlines privately? What were they going to say to each other that is so private when they are asking for our money? They sure didn't have much to say to Congress in the way of a plan, given all that privacy on three private jets. This is not a matter of class envy. I don't envy those people one bit, except that they seem to be totally oblivious to what is happening to their own country. Bet the new guys have swimming pools, memberships at expensive sports clubs, all the amenities, but I if they are so great, why has nothing changed under their leaderships? Do they have a time line in which they must make good or find another job? Bet not, at least not without a hefty severance agreement.

[feo]

When I worked for Ford, the company helicopter picked me up every morning, took me home at night. You complainers are just jealous.

[KOisGod]

sure, and my company give me a discount on mass transit tickets, I'm so ready to sit next to kids with piercings and strange things tatooed all over their flesh.

[breezyholler]

feo...why do you no longer work for Ford...if you had it so good ??

[bujeeboo]

See? This is what I'm talking about!!! Why do you think simply flying in a helicopter means the poster "had it so good"???

[bujeeboo]

I worked for a company that had two small corporate jets. He even set up his offices in San Jose and San Diego so he was close to the airports. We "low level" people took it from time to time. It's not a big deal, but it just sounds to many people like the company owns a luxury yacht or something. If costs got high, I think the planes would save the company money.

My husband had to buy a last minute commercial ticket from Portland to Orlando (cost paid for by his client). It was ridiculously priced and he charged his client 10 hours for his travel time (at $100/hr)

[ChaiKat]

So basically they are giving Congress the middle finger disguised as a peace offering? Oh brother.

[bibb]

Until corporate CEO are held responsible for their company's performance, and company boards quit handing out obscene compensation packages, our economy will continue to decline. When Toyota can beat us with leaner salaries for execs and better accountibility, there should be some attention to what this country is doing wrong.

The rich have paid lobbyists for years to convince congress ignore this travesty. The blinders need to come off.

[BoulderSue]

Selling those planes would probably pay for quite a few people's pensions. Getting rid of the CEOs and hiring some bright, young go-getters who are willing to work their way up and know they are gone if they screw up might help some, too. Or, as David Bonior says, ask the present CEOs to work for a dollar a year until the companies start earning money again and have proven themselves to be viable companies. I'm sure they have plenty packed away, even if they took hits on the stock market. Half of a billion not a billion, but IT IS half a billion.

[feo]

I'd go further. Ask Congress to work for a dollar a year until they fix this mess that we call the United States of America.

[breezyholler]

I'd go further than that.....demand that congress work for the average American....keep their big salaries ...just do their freaking job with honesty and fairness....wouldn't that be a huge change !!

[Noodnik]

If they didn't fly around so much, maybe they would have noticed sooner that nobody was buying their cars. Where were they flying so much anyway? How many executives did they have for those 5 planes? And did the union big wigs get to fly in these planes too? They should have concentrated on building cars people wanted. They should beg for money from their oil producing friends, the benefactors of their gas guzzler products.

[Meggie]

Hey, I wonder if we'd get the airline industry fixed if these guys all had to start using it again? No more lost luggage - no more unexplained delays....