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GM, Ford execs go begging in private jets

Posted Nov 19 2008, 12:08 PM by Todd Harrison
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If you're planning to beg Uncle Sam for $25 billion, it might be smart to brush up on your poor-boy act first.

The CEOs of General Motors, Ford and Chrysler overlooked this basic fact when they flew to Washington in private jets to testify before Congress.

Wagoner's trip to Washington in a G4 private jet cost his struggling company an estimated $20,000 roundtrip. A commercial flight booked online would have cost about $576 for coach and $1,674 first class round trip.

Sure, sure a CEO's time is more valuable than gold, but there are cell phones and e-mail to keep in touch with the galley slaves back in Detroit -- and electronic gizmos work on commercial flights and even in airport terminals or taxis.

Ford CEO Alan Mulally's $28 million pay package includes the use of a private jet. He lives in Seattle and the company jet zips him home on weekends, ABC News reports.

You'd think avoiding the "let 'em eat cake" trap would be Public Relations 101. But maybe the auto industry CEOs are so accustomed to their perk-filled nether world that they simply don't understand how a little thing like flying on a private jet to ask for a handout looks to the working stiffs of America.

"We want to continue the vital role we've played for Americans for the past 100 years, but we can't do it alone," GM's CEO Rick Wagoner told the Senate Banking Committee.

Tom Schatz, president of a watchdog group called Citizens Against Government Waste, huffed: "This is a slap in the face of taxpayers. To come to Washington on a corporate jet and asking for a handout is outrageous."

The CEOs at Detroit's (formerly) Big-3 automakers could benefit from a lesson in PR smarts from Goldman Sachs.

Seven top Goldie executives, including CEO Lloyd Blankfein, are giving up their bonuses for 2008. It's a move that's sure to keep the press, members of Congress and other pests off their backs after participating in Uncle Sam's $700 billion bailout plan.

That creates the appearance of shared sacrifice - and here's betting that life goes on if you forgo a private jet and take a commercial flight.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Scott Reeves.

Related reading:

GM: Where's Steve Jobs When You Need Him?

Outside The Box: Five Potential Surprises Into Year-End

Quick Hits: Ford To Offload Mazada Stake

Comments

 

No Bailout ! Let them suffer the consequences of their excesses.

Fire the greedy SOBs and sell the private jets.   No CEO is worth that much, especially when they do such a lousy job foreseeing the market.    

why so bitter? are you guys part of the housing crisis, did you take out loans that were too good to be true, then its you that caused this mess, not employees and management at general motors

Not one of these guys could take a commercial flight.  What if someone recognizes him?  If I saw one of these a-holes getting off a plane, I'd punch him in the nose.  Same goes for the wall street execs.  The bailout is complete and utter bullsh-t.

These guys are so far out of touch with reality it scary to put more money in their hands!! I want to hear they are giving up the "golden bonuses, pensions, private jets" before they get any more hand outs at my expense!! I've had to cut back drastically - they should too!!!

 Seriously?!?!  28 million dollars a year and  the use of a private jet??  To do what??  Your company is going broke and you don't know how to fix it??  Stop paying people 28 million dollars a year.  Salaries have gone insane. NO ONE... I mean NO ONE is worth 28 million dollars a year for their work. The little man working in the factory you run, doesn't make 20,000 A YEAR and you just spent his salary to fly in a jet to beg for money and if it's unsuccessful.. you are going to tell him he NO LONGER has a job.  How do these people sleep at night?

Where is Lee Iacocca? No Bailout unless all the members of the Board of Directors and the top Exec's they have put in charge are prosecuted and have their posessions confiscated and put back in to cover the hole they have caused the shareholders and employees! It is time we make these crooks in suits pay for their corporate and collective greed.

There should be NO bailout, tothe Financial industry nor the auto industry. This is the risk that private business takes. You can make money or loose money. That't the name of the game. Perhaps Mr. Paulson should be held more accontable along with the biggies they have already given bailout monies to. Since we are already giving money away, why not give it to the auto companies, heck, let's just give each and every company out there going under due to poor management some cash so they can keep going status quo! And with that, how about a nice fat check to each and every tax payer as well, we're all hurting as much as the businesses of this country! I say to heck with businesses, give the money to all of us hard working fools out there stil paying taxes! Money back to the people will jump start the economy faster than any business bailout.   jk

LETS TR TO REMEMBER ALL THE PEOPLE THIS WILL BENEFIT! PLUS ALL UPPER MANAGEMENT SHOULD GO WITHOUT PAY FOR AT LEAST TWO YEARS SO THINGS CAN GET BEETER FOR ALL OF US. THEY  HAVE MADE PLENTY OF MONEY NOW ITS TIME FOR THEM TO PAY US BACK.

Hmmm. . .. . if GM goes under, then what happens to the guy who just bought one of their cars? Or the average Joe who is working in there factory making these cars? As far as the salaries go. . . . why is it we don't have a problem with actors making 20 million per movie, or basketball stars making a ridiculous amount for a game? Pay the salary, just get someone who is worth the money and that has the know how to save the company!

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