General Motors chairman Ed Whitacre hasn’t been able to attract new leadership for the struggling U.S. automaker.
The problem is that government-imposed pay caps for GM don’t match the actual salaries one has to pay for executives in the labour market.
CNBC (Reuters): Under the caps set for GM’s top 25 executives, GM Chief Executive Fritz Henderson had his cash salary cut 25 per cent to $950,000 from $1.26 million.
Cash salaries for the top executives were cut by 31 per cent and only one unnamed executive besides Henderson will be paid more than $500,000 for 2009.
Whitacre said that $500,000 limit made hiring from outside difficult and he urged a reconsideration of the limits set by the Treasury Departments’s special master Kenneth Feinberg.
“To find top-level people where you need them, that’s a more difficult thing to do at that salary level,” Whitacre said.
“I don’t think (the caps) will be lifted, but hopefully they’ll be modified.”