Big Three CEOs To Take $1 A Year Salaries If Their Companies Get Bailed Out (POLL)

Now that Americans have footed the bill for more than a trillion dollars in bailouts, Congress is finally starting to clamp down on executive pay as a condition for a bailout.

AP reports, "Some members of Congress have urged the Big Three executives to take major pay cuts as part of the deal. Chrysler Chief Executive Robert Nardelli said he would work for $1 a year, and a similar commitment is expected from GM CEO Rick Wagoner. Ford plans to include a pay cut for Ford CEO Alan Mulally, although the size of the cut was not immediately available."

Just this morning, Ford's CEO said he would take $1 a year in pay if Ford got bailed out. Chrysler and GM's CEOs joined the salary-reduction pledge as well.

Ford Motor Co. will tell Congress that it plans to return to a pretax profit or break even in 2011 when its CEO appears before two legislative committees this week.

Also, CEO Alan Mulally said he'll work for $1 per year if the automaker has to take any government loan money.

The plan Ford is presenting to Congress this week also says it will cancel all management employees' 2009 bonuses and will not pay any merit increases for its North American salaried employees next year.

Other cost-cutting actions include a plan to sell Ford's five corporate aircraft, the company said.

Take our poll and tell us if you think this a good policy for all bailed out companies:

Quick Poll

Should CEOs Who Are Getting Bailed Out Forfeit A Salary?

YES

NO

Comments

[Mildmannered]

GM execs should be fired.

[kstuff]

It's official. Many of you would love to see the Big Three fail. The CEO's could make less than a dollar a year and you would still not be happy. You are hoping that a major industry in your country collapses. It seriously makes me wonder if in your right minds.

[RnR]

This failure is a failure of management, absolutely. As a condition of the bailout all these guys should get gone...for­ever out of the picture.

Oh, I lost 500 billion dollars for my company ... ok, well here's some more but be more careful this time.

Why is America the country that rewards corruption, greed and stupidity? And they'll try to pin some of this on the auto workers? The auto workers should be put in control of the big 3.

[RnR]

Oh, btw, Toyota can produce better, longer lasting vehicles cheaper because they don't have to supply health insurance - it's supplied by the government.

Yo...Gover­nment of the USA - get it?

[ErnestineBass]

Ummmm...yo­u must be thinking of Wal Mart.

Toyota pays for it's employees' health care.

Try doing some research before posting nonsense.

[JeffersonState]

I see alot of 60's era muscle cars and older American classics on the road. 60's era Toyotas? Classic Hondas? Notsomuch.

Toyota had the most recalls last year. Ford had higher initial quality ratings last year.
Honda, Toyota, Mazda, Kia and the rest all have large bustling service departments at every dealership they operate.

You are living in the past. Chevy and Ford now produce great reliable cars that are LESS expensive than their foriegn counterparts.

ALL cars break.

[Enid]

This plan should speak to how they plan on running the company its mission its focus its forecast of financials. This should not be about pay these guy got stock big time and bank account.

This is about turning around a billion dollar business.
Just tell us what you will do.

[shockedandappalled]

Of course, Iacocca worked for a dollar a year, and then got huge bonuses. But I think that was AFTER the loans were repaid. Anybody remember if that was the case?

Taking a dollar per year in salary better mean no bonuses, either. It's not like they don't have a little something tucked away from the tens (or hundreds) of millions they've taken over the years.

If not for the fallout for the whole country, I'd say let them fail. But that would be a disaster, especially right now. Fire the lot of them and their boards of directors, too.

[fairplay500]

No golden parachutes but perforated parachutes. God!, let them sink, that will shed the fat and perhaps they will come up with something useful.

[Ponderus]

Fire them and their boards of directors.

And while were at it, unionize Wal-Mart.

[Dolphinfan65]

THIS IS A JOKE RIGHT? THEY ROBBED THE COMPANY BLIND AS WELL AS THE INVESTORS AND THE WORKERS!!!. NOW THEY WANT TO PROVE THEY CAN RUN A COMPANY AND GET PAID FOR IT IN THE NEAR FUTURE!!! NO WAY.GO TO HECK YOU JERKS!!!!!. YOU NEED JAIL TIME, AND CHAPTER 11.

[Mag44]

I was under the impression Obama was disappointed when they showed up the 1st time and said he'd hoped they would've come better prepared. That they need to look to the future and start making more efficient cars. Come to the table w/this kind of plan. Giving up your salary is not a plan to me. I want to know what they would use the bail out money for. And if I'm correct, I think that is the answer Obama wants from everyone seeking the bail out money, which is the way it should be. How is this money going to be used EXACTLY. Down to the last penny.

[CitizenInformed]

Good point. The last meeting, the GM guy couldn't even answer how much money they needed through year-end (1 month) for operating costs. What kind of business is that?!

[PhyllisJane]

I can't participate in the poll because, 1) I don't believe the "Big 3" deserve a bailout & 2) I don't believe they should be paid AT ALL no matter what happens. They can sell some of their personal assets & live like the rest of us do.

[itisover]

In 1996, ford taurus was the most sold car in USA. toyota camry got the title in 1997. before then, ford sales were still dropping.

since foreign automakers were not competitors in the truck industry, american automakers shifted their focus to bigger cars. gas was still cheap then. and, we liked bigger meaner cars so it was all good.

until the gas prices soared thanks to bush. people stopped buying trucks, suvs, hummers. since american companies didn't invest in smaller cars, they had nothing to sell.

it has been more than a decade these companies mismanaged. nobody did anything. executives made millions. now they are threatening us to run down the whole country.

i call this black mailing.

this country is going totally off the track.

[McJeff]

kind of a no-brainer­....

[NWBrunette]

$1 salary? OK, I'll bite. Please everyone, remember that most of the money that goes to CEOs is not salary, it's stock, it's options, it's bonuses, it's free tuition for their kids at Ivy League schools, it's interest free loans for homes, yachts, bunnies, etc. If they want to limit their TOTAL compensation to $1 a year until every last dime of the bailout plus a variable rate of interest is paid back, then fine. Otherwise, they can go blow their smoke up someone else's skirt.

[BillyMae]

They should be fired - with no golden parachutes.

[chnge2012]

You people are crazy the auto industry is a private industry that is handcuffed by Capitol Hill, with regulations, cafe standard, and saftey regulations not to mention absurd union contracts ( which they made but with Capitol Hill strong arming). Capitol Hill has spent us into an astronomical deficit, Charlie Rangle knowingly hasn't paid taxes on properties, Barney Fwank and chris Dodd with Fannie Mae and Freddie Mac forcing lenders to write loans to people who shouldn't have under the threat of racism. Do they vote themselves a pay cut or term limits ? Wake up people