Chrysler Pays Out $30m in Exec Bonuses

"It's in the contract"!!!.......I am so sick of hearing those words...."we can't do that, it's not in the contract"...."we have to do this because its in our contract"....."you have to pay me 'x amount', its in my contract". Is there a law somewhere that says that these execs can't opt to have their contract reworked for the benefit of the company? Now don't get me wrong, I'm not a lawyer but doesn't any contact has the capability of being re-worked? If someone has some information that I haven't read, please let me know.

Robert Farago @thetruthaboutcars.com

Editor’s note: Comments on this story have been temporarily disabled. No, not our story. The Detroit Free Press article revealing that “Chrysler is in the awkward position of paying about $30 million in retention bonuses to keep top executives while the company cuts thousands of jobs.” Yeah, don’t you hate it when that happens? The Freep immediately counters with the ameliorating fact (not) that “Chrysler owes the bonuses under its contracts with about 50 executives, based on a retention incentive plan crafted early last year by former German parent DaimlerChrysler, when it was preparing to sell the Chrysler unit.” Ohhhh, so that’s alright then.

“Documents obtained by the Free Press [you go girl!] show that at least six Chrysler executives are due to receive bonuses of more than $1 million apiece to stay through August 2009, the two-year anniversary mark of when private equity firm Cerberus Capital Management bought an 80.1% stake in Chrysler.

Those promised the largest retention bonuses:

• Frank Ewasyshyn, executive vice president, manufacturing, $1.89 million.

• Frank Klegon, executive vice president, product development, $1.8 million.

• Nancy Rae [yes, the same Rae that's defending the payouts], $1.66 million.

• Simon Boag, president, Mopar/global service and parts, $1.65 million.

• Steven Landry, executive vice president, North American sales, $1.63 million.

• Michael Manley, executive vice president, international sales, marketing and business development, $1.53 million.

The bonus sizes ranged from a high of Ewasyshyn’s $1.89 million down to $200,000. The agreements provided for payments of 25% of the bonuses in February 2008 — which were made on schedule — and for the remaining 75% to be paid in August 2009.”