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GM, Ford execs go begging in private jets

Posted Nov 19 2008, 12:08 PM by Minyanville
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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

 

Bailout = Taxation without Representation. We fought a Revoluntionary War and a Civil War in part over this issue of representation. I, for one, suggest we all quit paying income taxes to the Federal and State Governments. What are they going to do about it? Write angry letters?

These bozos in Congress and in Industry deserve to be throw out. They certainly do not deserve anymore money from us to spend on their campaign contributors, lobbyists and themselves. They are cluless, cruel and stupid. It is time to revolt. Thank God we have guns. Soon they will be coming for those.

There goes Bob Nardelli (Chrysler) ruining yet another company like Home Depot or GE

A CEO's CFO's or whatever pay should not be more than 10% higher than that of the lowest paid employee.

Wagoner makes $25 million salary and takes a flight to beg for $ to bail out a company that he helped run into the ground, $20000 is less than 1% of what he makes let him pay for the flight.  The CEOs just dont get it they have a holier than thou attitude and come to expect $ just to show up for work.  If I lost money at my job I wouldnt expect my company to compensate me they would fire me!!!!

Without help there will be a rippling affect throughout the country , contributing to unemployment with suppliers, raw material producers, glass, etc.... all the way down to the places these folks each their lunch at.  They will all be affected.   Unemployment will reach 25% and the country will be in a depression.  How many of you have sat down and talked with folks who lived through the depression?  How many of you have read an economic book on the depression, probably very few? You have no idea what you are saying when you simply say "let them go under".  Look at the bigger economic picture and past the hatred you have for overpaid CEO's and unions that ran their course 30 years ago.  

This country cannot afford another flow to consumer confidence or sentiment. This will just drive all US markets into a free fall. A lot of what is going on now is being fed on sentiment and fear, more unemployment, a big 3 failure and you have the recipe for a depression.

i agree that some the CEO's of  GM,Ford and Chrysler are over-rated either with their paycheck or flighting in G4 when your company is going bankrupt, but one need to see that they werent the ones that got us in this mess. The ones responsibles for this are the CEOs from the big financial institutions; those are are the ones that need to suffer, but what did congress do? it created a bail package right away. Now that Gm,Ford and Chrysler are going to bankruptcy, this are  companies that offer job to hundreds of thousands blue collar workers... they dont wanna do anything.... amazing the rich keep geting richer and the poor dont matter...

I think we should impeach any elected official that votes to bail out the auto compaines! How long would 25 billion last about 4 or 5 months? I think these idiots should bite the bullet and learn to live in the real world. Let them file bankruptcy, we pay way too much for the sorry cars they make and now they want our help, NO!

Why are we still rewarding poor performance and greed with bonuses and perks that, to all of us out there pounding the work place day in and day out, appear to be out of touch with reality?

Before this bail out is granted, every CEO, CFO, COO and the rest of them should be asked to resign and, since their performance at their possitions has been much less than satisfactory for the last few years, their bonuses and "extra benefits" should be return to cover some of this bail out amount.

I know that if I would have performed my job half as bad as they have done theirs, I would be now a member of that increasing number of unemployed workers out there.

Storm, if the CEO's were so qualified in the first place why are they going broke and begging now.  You ever heard of cell phones and webinars? Plus are you saying that you believe CEOs work non stop during a 24 hour day that require them to have these perks? You sound like one of them and just defending the fact that the average person is disgusted. Plus you think after Nardelli did a great job at Home Depot he's doing a great job at Chrysler? You think Mozillo at Countrywide did so great that he warrants his millions too?

Giving these guys a bailout is like giving money to a drug adict.   You know he's just going to make more bad decisions.    A condition of any bailout should be new management, no golden parachutes, and no bonus to the old management.

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