Former GM CEO Rick Wagoner Gets $8.6 Million Retirement Package
General Motors’ former CEO, Rick Wagoner, will reportedly receive a retirement package worth $8.6 million in the first five years–about 60 percent less than the package he would have received at the end of 2008.
Wagoner was ousted from the automaker in March by the Obama administration. He will officially retire in August, with reduced benefits and a smaller amount of cash.
The former CEO reached a retirement agreement on July 8 with Motors Liquidation *** the “old GM” that is currently wading through bankruptcy liquidation. Wagoner will retire in August and is entitled to $74,030 per year under the salaried retirement program, as well as an additional five installments of $1.64 million under the executive retirement plan, based on 32 years of service.
If Wagoner had retired at the end of 2008, he would have qualified for annual payments of $68,900 and five installments of more than $4.5 million each, according to GM’s last annual report. In addition to the salaried and executive retirement programs, Wagoner will continue to receive personal liability insurance until January 1 and an existing life insurance policy or its cash value, worth nearly $2.6 million.
According to Reuters, Wagoner agreed to his $1 a year salary (despite being force out by the government) until his retirement package could be finalized.