Monday, April 20, 2009
Chrysler Refused Government Loan Over Limits on Executive Pay
According to the Washington Post officials at Chrysler turned down a $750 million loan from the federal government because it came with limits on executive pay. Chrysler instead opted for more expensive private financing instead.
So it appears the executives would rather ride the company into the ground rather than give up their lucrative salary. So the next time they come to Capitol Hill looking for a bailout on the basis of "all the jobs that will be lost" don't believe them.
I would think the shareholders would have a case against the board and the CEO for abandoning their fiduciary responsibility for their own personal gain.
#posted by Rob Roschewsk @ 4:52 PM