Former GM CEO Wagoner Departs with $8.6 Million

Before being removed from the position of CEO by the new White House GM restructuring plan (a move which we can't accept he didn't 'foresee') Rick Wagoner appointed Bob Lutz as Vice Chairman and Senior Advisor while naming Thomas G. Stephens – Vice Chairman – Global Product Development, as reported by autoevolution earlier this year here and here.

Wagoner will now retire with an estimated $8.6 million in the first five years, as reckoned by Reuters. GM wants to deliver this news as a positive thing, emphasizing the fact that Wagoner's retirement package is almost 60 percent lower than it would have been at the end of last year.

After all GM's CEOs and high end managers drained out huge amounts of money in the recent past years and led the American automaker to bankruptcy through unbelievable bad management, they signed a 1$ a-year salary forced by the US government and now walk away with questionable (to say the least) retirement plans and other what-not bonuses.

Back to the main news however, Wagoner's retirement, which will take place on August 1, will benefit from a new agreement that was reached on July 8 with the old GM, now renamed Motors Liquidation Co.

After 32 years of so called 'service' to GM, “Wagoner is entitled to an annual $74,030 under the salaried retirement program and five installments of about $1.64 million under the executive retirement plan,” Reuters wrote.

Wagoner arranged a retirement plan for himself last year, which entitled him to five payments of more than $4.5 million each as of the end of 2008 and $68,900 per year, under GM's executive plan and the salaried program respectively.

Rick Wagoner will also benefit from an existing life insurance policy or its cash value, of nearly $2.6 million, Reuters mentioned.

We end this story reminding you that GM received until now $60 billion in government funding.