Rick Wagoner to Get $20M Retirement Pay

As we told you yesterday, Detroit, or the upper management at least, was shook yesterday by the news that Rick Wagoner, General Motors CEO, will no longer hold his position, as the Obama administration kindly asked him to step aside.

Even if some of you watching the ongoing story might have wept when hearing about Wagoner's departure, rest assured that the former CEO will not end his nine years long career with the American manufacturer without getting his cut.

$20 million cut, to be accurate. This is the amount Wagoner's retirement package is worth, according to the company's financial fillings, quoted by Even if the Treasury Department has banned GM from paying any severance package to the former CEO, Wagoner is eligible to collect these millions as retirement benefits from GM.

According to an official statement issued by GM, "Wagoner has worked for GM for nearly 32 years and he is entitled to certain vested awards, deferred comp and pension and other post retirement benefits."

Most of the CEO's benefit "will be paid out as an annuity over five years, the remainder is a small lifetime annuity," Julie Gibson, GM spokeswoman was quoted as saying by the aforementioned source. The company later reconsidered its position in an email sent by the same spokeswoman, in which it said that "specifics of any compensation entitled to, or actually paid to Mr. Wagoner are still being reviewed."

This AIG look-alike story was best summed up by Tiffany Ten Eyck of Labor Notes, a publication covering unions. "I think it's another perfect example of why there's so much frustration among working people. I wouldn't mind retiring out of an industry in crisis with a $20 million package."
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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