UPDATED: GMAC CEO's Private Jet Use

UPDATED -- A spokesperson for GMAC responded to this story and said that the increase in Al de Molina's compensation in 2008 was a result of to him being promoted to CEO from COO. de Molina also voluntarily declined to take a year-end bonus in 2008.

It should be noted, as we point out below, that upon becoming a TARP recipient, use of all company aircraft ceased GMAC. The spokesperson also said, "de Molina became CEO in 2008 and is the one that lead GMAC through a series of actions over the past year to stabilize the company, including pursuing the bank holding company path."

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Call it flying high while the ship sank. For the leaders of the world's biggest companies, 2008 was a great year to have access to a private plane. As ABC News reports, 2008 saw more miles flown by elite CEOs than any of the previous five years.

Curiously, one big bailout recipient led the way in racking up private jet miles flown. GMAC's Alvaro G. de Molina, the CEO of the embattled lender, logged $2.25 million worth of air time in company planes in 2008, almost four times as much as the next CEO on the list. GMAC was the only company on ABC News' list to spend more than $500,000 in private jet miles last year.

To date, GMAC has received $12.5 billion in bailout funds. Yet, in 2008, de Molina's compensation more than doubled to $11.62 million. Reuters points out that about $2.62 million of this amount came from de Molina's private jet usage.

Though, Molina certainly spent a large portion of 2008 in the air, things slowed down after GMAC took TARP money.

Here's what GMAC said on this in its most recent 10-K:

"Upon becoming a TARP participant all personal and business travel on company aircraft ceased. Prior to this, senior executives could make occasional personal use of company-provided aircraft if approved by the CEO. In addition, a company aircraft was provided for Mr. de Molina's personal use primarily related to commuting between his home and work location with all or a portion of the aggregate incremental cost to be offset against his realized SAR values in the future under an amended contract. Other senior executives with homes in the same area as Mr. de Molina, including Mr. Ramsey, commuted with Mr. de Molina. At the time of the hiring of Mr. de Molina, and subsequently of other senior executives, the personal use of company-provided aircraft was necessary in order for us to attract seasoned executives with their knowledge and experience at a time when GMAC was facing significant business challenges. All employees using the GMAC-provided aircraft for personal use were liable for taxes on the imputed income resulting from this perquisite."

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Comments

[RJII]

Taxpayers lost jobs and income. GMAC foreclosed on their homes and rode private jets w/ TARP funds.
Bankers 2.25 million; taxpayer 0.

[davidwayneosedach]

It is good that the taxpayers bailout funds were put to good use.

[expired]

This coming from someone who thinks that Blago invented pay to play.

[expired]

s*** h/ Up

[garymc8]

Were they flying those union guys you hate so much? NO. Ceo's destroyed GM not the UAW. The gop is killing the auto manufacturers to kill the UAW, Americas largest union. That is TRUE AND TOTAL GREED. DESTROY America so you can have slave labor. Really smart.

[toushe]

Having heard O today in Wis. tell the people he doesn't want to run the health care industry because he was busy with Irag,Afgha­nastan,Ira­n,Pakistan NOKO well since he has done nothing about them it looks like he certainetly want to run health,the auto ind. the banks anything that doesn't take any guts to handle!! ALL HAIL O !!!

[5hy56]

1st 100 days - There are 2.9 million more people unemployed in May than there were

unemployed in January. The unemployment rate went from 7.6% to 9.4%.
Since May 2008, we have lost 5.5 million jobs. The biggest losers were:
Manufacturing 1.5 million lost
Finance & Prof Serv 1.5 million lost
Construction 1.1 million lost
Retail & Leisure 1.3 million lost

one of my new favorite finance websites: href=".http://kl.am/tsc ">Econ & Finance Articles Updated Daily

Having said that, unless we rethink the way we use our wealth, this world is doomed.

al-Waleed bin Talal, however he came by his wealth is in a position to make a difference.

Instead he chooses conspicuous self-consumption.

[Phil Waste]

Looking inside myself and knowing that what I"m feeling millions of other Americans are feeling, should give the American government pause to consider what they are doing.

I feel backed into a corner without hope for change, without any hope that our government can break the hold of the banks, corporations, AMA or foreign agents controlling our banking system and legislators.

To my eyes the situation is totally hopeless; there is nothing we can do as citizens to change what is happening. There are only two choices left open to us at this point. Fight or flee.

I choose, flee, because I"m to old to fight so I will soon become an expat and will leave this country that I love.

We have been told all our lives that our vote makes a difference and I can tell you right now with a lifetime of voting that my vote hasn"t made even one difference. It"s all a sham!

Right or Left, Republican or Democrat, it is all smoke and mirrors it boils down that we American workers have been duped by the rich and powerful. We never had a chance really as they hold all the strings of power. They can make war, steal us blind, manipulate the banking system and they just flat own congress.

What a travesty perpetrated against the American people.

Have you noticed that no one has gone to jail? Not for the war, not for the banking failure, not for the torture, not for nothing.

[smchp]

This focus on private jets is just so dumb. Time is money and when your an Executive you would probably cost the company a LOT more money if you were staying in hotels, waiting in Airports, and flying commercial.

[jetscan]

I'm still waiting for Obama to kick out Geithner and Summers and appoint Spitzer and Warren. Michael Lewis would complete the economic team.

[smchp]

How would you go about handling Afghanista­n-Pakistan and Isreal-Palestine? You seem to have all the answers to questions you don't fully understand.

[mapleaforever]

No surprise. This former GM spinoff behaved in the same regal fashion as it's former parent company.

[ParacelsusTheophrastus]

Do they not like driving and cars?

[desertman]

Cars don't move at 500mph. Hard to get to meetings on time.

[toushe]

All it takes is people in the right places.Political connections are certainly worth the money you pay for them.Just look at the auto industry!! In his majesties home state it's called the blago!!

[TheKrausers]

who really cares.

[mykebee]

Me..and my kids you arse.

[desertman]

Do you need a jet?

[Coyote777 7]

I am sorry A,rianna, but we R restricted from expressing our views, so my voice will remain silent....­..........­..........