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You are here: Home Newsletter How much can your pay drop in one year?

How much can your pay drop in one year?

Ask Rick Wagoner.  His pay dropped from $1 per year to zip.

As head of troubled GM, which reported $82 billion in losses over the past three years, Wagoner had a raise in 2007 and a raise in 2008, before taking a cut to $1. Now his stock options which were worth $11.9 million for the year 2008 have dropped to $682,000 in value.

So two years of explaining and apologizing for a giant compensation package of up to $14.7 million dollars per year was wasted.  How much time do we waste explanation our problems and our failure to act? 

President Obama didn’t fire Wagoner, but he and his Auto team have laid down some requirements for CHANGE.

There have been positive signs in the economy that we are stabilizing banks, interest rates, and even the stock market.   We are on the mend.  There will be more volatility, with current events and distractions.  President Obama has four summits this week.  What do you have going on?

Thinking about your compensation and your ability to control your position in the marketplace, you must be empowered.  “If it is to be, it’s up to me!”  That’s a favorite affirmation of positive minded entrepreneurs.

Where is the positive side of the Wagoner news? 

The White House is demanding GM and Chrysler to get MORE SERIOUS about their REAL RECOVERY PLANS, and to consider Chapter 11 bankruptcy. President Obama want’s GM to split into two halves.  The good GM and the bad GM.  The USA keeps both. 

Washington wants Chrysler and FIAT to marry, in Italy, so they can make beautiful smaller cars. President Obama couldn’t wait for Detroit to make it happen.  Why? Because it will be years before FIAT and Chrysler create cars that are more popular and profitable than the best.

Well, now that you stop and think about it, there is good news.  You know that you won’t be split, or sent to Italy.  You know that you don’t have so far to fall. In fact, you may already be looking UP!

With Oil off 8%, and Spain reorganizing a bank, and the stock market losing it’s shine from the earlier gains in March, we’re back to the new normal.  It’s goint to take a long time to right this ship.  But we will.

Meantime, back to your business.  What’s your strategy to FOCUS and MOVE AHEAD?

Write me and tell me “What’s next?”

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Ask Rick Wagoner.  His pay dropped from $1 per year to zip. As head of troubled GM, which reported $82 billion in losses over the past three years, Wagoner had a raise in 2007 and a raise in 2008, before taking a cut to $1. Now his stock options which were worth $11.9 million for the year...


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