DOW JONES NEWSWIRES
General Motors Corp. said Tuesday former Chairman and Chief
Executive Rick Wagoner will receive an annual salary of $74,030 for
his lifetime and annual benefits of $1.6 million for five
years.
The Obama administration demanded Wagoner step down in late
March because GM wasn't making enough progress in demonstrating it
would be a viable company after taking billions of dollars from the
federal government. He remained on the payroll making $1 a year and
receiving the same benefits afforded to him during his tenure as
chief executive.
The retirement benefits are based on his 32 years at the Detroit
auto maker. In a filing with the Securities and Exchange
Commission, GM said Wagoner will retire effective Aug. 1.
Wagoner will continue to receive liability insurance coverage at
a level similar with other retired executives until Jan. 1, 2010.
He also will receive a life insurance policy, which the company has
maintained for his benefit since Jan. 1, 1997, or its cash value,
currently $2.6 million.
The company filed for bankruptcy protection June 1 and emerged
Friday after some of its best assets, including the Chevrolet and
Cadillac brands, were sold to a company to be known as General
Motors Co. The U.S. government owns a 60% stake in "new" GM because
of the $50 billion it invested in the auto maker.
GM's stock price had declined from more than $70 a share to
under $3 during Wagoner's tenure as CEO, which started in June
2000.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com