So Why is This Man Smiling?
It isn't easy being the top dog for an automobile manufacturer these days. GM's Chief Executive Officer Rick Wagoner has been dealing with financial losses, plant closings, union problems, retiree pension and health costs, poor credit ratings, and a never-ending barrage of criticism from the automotive press for uninspiring products. Now comes the cruelest blow of all. The Detroit Free Press reports that General Motors has cut Wagoner's pay by 46% to $5.48 million. GM's board of directors withheld any bonus to Wagoner and the other four top executives due to poor results in 2005. But don't feel too sorry for "the Rick." His base salary remained unchanged at $2.2 million and he received options for 400,000 shares valued at $2.9 million.
Meanwhile, in Korea, 68-year old Hyundai Motor Chairman Chung Mong-koo is being investigated by prosecutors in a slush fund and bribery inquiry. His son Chung Eui-sun, president of Kia Motors, is also under investigation. (Kia is an affiliate of Hyundai.) Local media suggested that one of the two executives would be arrested, most likely the elder Chung. At least their products are being praised.
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