Bailed-out, kicked out, but not down-and-out as Wagoner scores monster pay-off
He may have been ousted by Presidential decree, but former General Motors boss Rick Wagoner won’t be joining the queue at the Detroit soup kitchen any time soon.
Much like the former RBS boss Fred Goodwin here in the UK, Wagoner faces being pilloried in the US media over a ‘golden parachute’ deal that is reportedly worth over $20 million. The staggeringly generous retirement package will be paid over a number of years, in spite of U.S Treasury Department strings attached to its GM bail-out that stated no severance packages would be paid to failed auto industry execs.History
has yet to decide how Wagoner will be remembered, with many in the industry believing his turn-around plans for GM were soundly based and thwarted only by the sudden collapse in the global economy.
Others may not be so kind, especially the 47,000 former GM employees whose jobs were axed on Wagoner’s watch, or the US taxpayers who have already witnessed $13bn of their dollars being swallowed up by GM – perhaps still on its way to Chapter 11 bankruptcy.