Tuesday, February 07, 2006 9:32:21 AM
What real companies do
A news story found on yahoo appears below.
I bet this was brought on by a bunch of bashers, such as multi-billion dollar institutional investors and top Wall Street security analysts who questioned management when they did not perform.
By DAVID RUNK, Associated Press Writer
19 minutes ago
DETROIT - General Motors Corp., struggling with billions of dollars of losses in North America, announced Tuesday it is cutting in half its yearly dividend to $1 a share and reducing the salaries of its chairman and senior leadership.
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The cut in its dividend will reduce GM's yearly cash payout by about $565 million. The automaker also plans to cut health benefits for salaried retirees and evaluate ways to restructure its pension plan for salaried U.S. workers.
The announcements came a day after a top aide to billionaire investor Kirk Kerkorian was elected to GM's board. Last month, Jerome York outlined tough measures to bring the company back to profitability, including halving GM's dividend, cutting executive pay and setting profitability goals.
"These are difficult decisions that involve sacrifices by our employees, stockholders, retirees and the senior leadership team," GM Chairman and CEO Rick Wagoner said in a statement.
"However, we are confronting a dramatic change in our industry and in the global competitive environment, and that requires us to look for additional ways to reduce financial risk and improve our competitiveness for the long term."
As part of the changes, Wagoner will take a 50 percent pay cut. Vice Chairmen John Devine, Bob Lutz and Fritz Henderson will see their salaries reduced by 30 percent, and Executive Vice President and General Counsel Thomas Gottschalk will take a 10 percent cut.
In addition, there will be no annual or long-term cash bonuses paid to GM's global executives for 2005 performance.
A news story found on yahoo appears below.
I bet this was brought on by a bunch of bashers, such as multi-billion dollar institutional investors and top Wall Street security analysts who questioned management when they did not perform.
By DAVID RUNK, Associated Press Writer
19 minutes ago
DETROIT - General Motors Corp., struggling with billions of dollars of losses in North America, announced Tuesday it is cutting in half its yearly dividend to $1 a share and reducing the salaries of its chairman and senior leadership.
ADVERTISEMENT
The cut in its dividend will reduce GM's yearly cash payout by about $565 million. The automaker also plans to cut health benefits for salaried retirees and evaluate ways to restructure its pension plan for salaried U.S. workers.
The announcements came a day after a top aide to billionaire investor Kirk Kerkorian was elected to GM's board. Last month, Jerome York outlined tough measures to bring the company back to profitability, including halving GM's dividend, cutting executive pay and setting profitability goals.
"These are difficult decisions that involve sacrifices by our employees, stockholders, retirees and the senior leadership team," GM Chairman and CEO Rick Wagoner said in a statement.
"However, we are confronting a dramatic change in our industry and in the global competitive environment, and that requires us to look for additional ways to reduce financial risk and improve our competitiveness for the long term."
As part of the changes, Wagoner will take a 50 percent pay cut. Vice Chairmen John Devine, Bob Lutz and Fritz Henderson will see their salaries reduced by 30 percent, and Executive Vice President and General Counsel Thomas Gottschalk will take a 10 percent cut.
In addition, there will be no annual or long-term cash bonuses paid to GM's global executives for 2005 performance.
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