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Individual managers at the company are also doing well. Mary Barra, the CEO of GM, is now compensated at a rate of about $28.6 million per year according to the Detroit Free Press. Although the rank and file union members that build GM's vehicles ( for the most part) have also benefitted from profit sharing bonuses, Barra now earns about the equivalent of 356 union members (making, say $80K per year). As a point of comparison, Akio Toyoda, the CEO of Toyota (global) takes home the equivalent of roughly two to three million U.S. dollars per year according to multiple sources, and has for some time. Are you surprised that GM's top executive makes ten times what Toyota's does? -
However, today the Wall Street Journal is reporting that Justice officials may charge GM and its officers with felony wire fraud. In the eyes of the Department of Justice, GM lied to the public about the faulty ignition switches. Last year Toyota settled similar charges with the Justice Department over its misleading statements about unintended acceleration crashes. That settlement dwarfs all other automotive related fines. At that time, it was clear to those who report news on Toyota and GM that General Motors' liability and possible criminal wrongdoing appeared much more threatening to the company. The GM issue lasted longer, involved more vehicles, and is reported to have caused significantly more deaths and injuries. The probe is being conducted by the Manhattan DA. In a statement, GM said, “We are cooperating fully with all requests from the [Justice Department], as we have from the beginning." GM-trucks.com will bring you more as this story develops. We would be interested to hear your thoughts on the issue. Will GM be charged? Should their 2009 restructuring absolve them of responsibility if they did the same things Toyota did? You can read more at the WSJ on-line here.
