United Automobile Workers of America (UAW)

gagrice · March 2015

stever said:
You mean farmers get a tax break on their land? I'm shocked and amazed.

MN gave very good tax rates on Farmland.

stever · March 2015

"The United Auto Workers union said its membership rose 3.1 percent last year to 403,466 — the fifth-straight annual increase, and the first time since 2008 that it topped 400,000."

UAW membership rises 3.1% in 2014 (Detroit News)

gagrice · March 2015

It faces challenges of “right-to-work” laws in Michigan and elsewhere that allow members to opt out. Hourly workers at Detroit’s Big Three automakers will have that option after this year’s contract talks.

Well this is as it should be. Earn those dues from the workers. They have had a captive workforce up until now in Michigan, Indiana and Wisconsin. If they don't deliver on closing the gap in that horrible two tier system. I would be one to bail out of paying dues. I read the UAW spent $100 million of their strike fund trying to organize VW. I don't see them cracking that nut unless they get a lot more out of the D3 this year, than I would guess. If they do away with the two tier and everybody can top at $25 within 3 years, they may get half the people at VW to vote them in.

A key UAW priority is getting a pay raise for workers at Detroit’s Big Three automakers and it also faces other big contract talks this year

The Detroit-based union said its total assets fell to $978.1 million, down from $990 million at the end of 2013.

gagrice · April 2015

To my fellow Edmund's friends in the San Francisco area. This is a sad day indeed.

No Joke: April 1st Brings Double Digit Sales Tax To Several East Bay Towns

http://sanfrancisco.cbslocal.com/2015/03/31/no-joke-april-1st-brings-double-digit-sales-tax-to-several-east-bay-towns/

fintail · April 2015

Those perky jobs in the nannystate sector aren't going to fund themselves.

tlong · April 2015

gagrice said:
To my fellow Edmund's friends in the San Francisco area. This is a sad day indeed.

No Joke: April 1st Brings Double Digit Sales Tax To Several East Bay Towns

http://sanfrancisco.cbslocal.com/2015/03/31/no-joke-april-1st-brings-double-digit-sales-tax-to-several-east-bay-towns/

It's so funny that when I was a kid the CA sales tax was 5%, and the state had less than half the people it does today. You would think higher volumes would create efficiencies of scale. But no. Now that we have twice as many people, we aren't building any new freeways, and we offer poorer primary education and much more expensive state colleges - well our taxes must be better, right? Heck no! They are instead double (on a percentage basis).

A high fraction of that money is going to the state unions - working AND retired - and their gold plated pensions. At least the UAW needed to be supported by for-profit companies, so ultimately there is some accountability there. Not so it seems with our government.

Mr_Shiftright · April 2015

Corporate welfare is rife in America and always has been. I hardly see all this as anything new at all. In fact, all major world governments subsidize their critical industries in one way or the other, as well as fund new technologies. No government in its right mind wants to lose its manufacturing base or its competitive edge in global economics.. If nothing else one could argue that an automobile industry is vital to defense and I'm sure that this was factored into the decision. The UAW is just a political scapegoat, chosen because it is impotent and can't fight back like it did in the old days.

berri · April 2015

Gagrice, from the stats I've seen the UAW has been increasing their membership over the past five or so years. So I think the asset reduction might actually be due to them getting the stock infusion from D3 during the auto crisis, but now having to set up health insurance for their workers. Personally, I'm not sure that it wouldn't be good for workers if unions got some membership gains because the Executive corporate leadership in the US have been padding their greedy pockets at the expense of their employee pay and benefits for awhile now. So much for "trickle down"! Just want to see a more level legal playing field for both sides during disputes and contract negotiations. To me at least, I see the weakening of labor unions as a sign that America is going down hill as a place for middle class economics. A few big-time "haves" and many "have-nots" eventually will not even be good for stockholders. Shrinkage of the middle class ultimately shrinks revenues for most companies, and US companies aren't likely to pick it all back up in "controlled and rigged" markets like China and India. I just don't buy that line of bull being thrown at us by some in Congress.

andres3 · April 2015

Mr_Shiftright said:
Corporate welfare is rife in America and always has been. I hardly see all this as anything new at all. In fact, all major world governments subsidize their critical industries in one way or the other, as well as fund new technologies. No government in its right mind wants to lose its manufacturing base or its competitive edge in global economics.. If nothing else one could argue that an automobile industry is vital to defense and I'm sure that this was factored into the decision. The UAW is just a political scapegoat, chosen because it is impotent and can't fight back like it did in the old days.

Why not just socialize GM then and call it what it truly is, Government Motors, so that we can share in the wealth of the profits, and not just share in the losses. This accomplishes all the "pros" you've listed.

dallasdude1 · April 2015

UNION bad, except when I take my Teamster payola. I would see the Wall Street central planning as the evil it is. As they shot gun married a few and threw a TARP over the rest, by definition central planning is SOCIALISM, which was the last act of Bush Jr. Then we see the Wall Street welfare entitlement mentality as they sell more stock, thereby diluting the present shareholder value, just to get their fat fingers on that bonus. The average Wall Street is what about $140K last year? Almost four times the yearly earnings of the average worker.

dallasdude1 · April 2015

When Georgia gave incentives to Kia, keep in mind that one of the main incentives is almost always a break on property taxes for 10 years. That is what we call an indirect tax on the taxpayers. Just because Walmart/McDonald don't pay their employee/associate a living wage, they are then an indirect cost to the taxpayers. Walmart, the nations largest employer, has their associates as the number one users of food stamps and other social service are borne by the taxpayers. More so if I don't frequent their stores, I'm being burden with the onus of Americas richest family being subsidized by my tax dollars. Then there is less competition, since they get this special treatment/comparative advantage, thereby there is a barrier to entry. COSTCO which I do frequent is paying there people right and thereby aren't a burden on society as a whole. Years ago when I was a member of Sam's, you could see the lack of incentive and COSTCO employees value their jobs and I'd bet have much less of a turn over rate. I'm just amazed at the boot licking of the wealthy as they are parasites on the society looking to push the risk upon society. The entrepreneurship involves risk and your using taxpayer money to buy them stadiums/arenas isn't capitalism. One has to recall the Williamson county Texas deep seated moral turpitude, which told Steve Jobs they didn't care for a company allowing the significant other, and their holier than thou persona. Well Apple said they would loo elsewhere and all of the sudden these sacred tenets were up for sale. It was like Steve Jobs had jobs and they were willing to get on their knees. Sir, I'd say you put the taxpayers on their knees for a Kia? I'd could see a Subaru, which incidently is the only automaker to gain market share, even in the 2008 meltdown.

dallasdude1 · April 2015

I read the UAW spent $100 million of their strike fund trying to organize VW
That's what's weird about the VW vote: The German company is campaigning for the UAW, not against it, in a kind of employer-union partnership America has seldom seen. What gives?

Well, VW is kind of different, as automakers go. It understands how having a union can boost productivity and allow it greater flexibility in adjusting to downturns. It should know: The rest of its plants are unionized too.

dallasdude1 · April 2015

wrcbtv.com/story/23405004/uaw-majority-at-vw-plant-have-signed-union-cards://

dallasdude1 · April 2015

And a deal with the United Auto Workers will allow GM to forgo a $10 billion payment to a union healthcare fund in return for a 17.5% stake in the new GM. Aggrieved bondholders are likely to emerge with 10% of the new firm for loans totalling $27 billion.

The UAW and GM's other likely new owners—the governments of America and Canada, with 72.5%—have said that they want to sell out as soon as possible after GM emerges from bankruptcy. But will America's government ever come close to recouping the $50 billion so far sunk into GM?

Not sure why everybody thinks GM hasn't paid back the loans. They never spent the money they borrowed and paid it back a while ago. The major investment the government made was purchasing stock in the new GM. The big issue in the bankruptcy proceedings was the major haircut they gave GM's Bond holders who really got screwed. The government will get their money back when [non-permissible content removed] US car buyers realize they own a piece of a company and buy that companies products to support their investment. That will cause the stock to go up and when the government sells it will get its money back or even make money. You hear all of this Government Motors BS and then you hear all the myths about quality and they just aren't true. GM builds a competitive product and doesn't get credit for it because of BS.

gagrice · April 2015

Some good points, some biased. If I remember correctly you are a UAW member in aerospace?

FIrst: COSTCO which I do frequent is paying there people right and thereby aren't a burden on society as a whole.

Some Costco workers are Union. Most are not. The origninal Price Club stores were Teamster. The Stores built by Costco have been picketed and the company won the battle over the Unions. They do treat their workers pretty well.

Walmart, the nations largest employer, has their associates as the number one users of food stamps and other social service are borne by the taxpayers.

Absolutely true, so why did the government do that? Welfare such as food Stamps was around long before WM and MCD's figured out how that bit of corporate welfare worked for their companies. With billboards advertising Food Stamps, I blame the government. Small companies also play the game. The poor UAW [non-permissible content removed] making $20 per hour is the one getting screwed. He could make out much better making $12 per hour.

NASHVILLE, TN (AP) - A majority of workers at Volkswagen's assembly plant in Tennessee have signed cards favoring the union's representation in creating a German-style works council at the plant, a top United Auto Workers official said.

Too bad that is not legal under our US labor laws. No proof either that they have over half signed up. Just wishful thinking. I think they are wasting union money on a losing proposition. Even if VW recognizes the UAW, a large percentage will not pay dues.

Not sure why everybody thinks GM hasn't paid back the loans.

Because the Feds sold the Stock for about $10 billion less than they paid. Plus the $27 Billion gift to the UAW pension fund. This also explains why people are not buying GM cars.

GM’s new CEO, Mary Barra, claims she did not even learn of the problem until December of 2013, which just so happens to be when the federal government sold its final shares of GM stock (at a loss of $10 billion, naturally).

http://thefederalist.com/2014/05/21/gm-sure-recalled-a-lot-of-cars-right-after-the-feds-sold-their-shares/

gagrice · April 2015

I thought it was Dubya, that started handing out cash to the D2? Not going to drag me into your political quagmire.

dallasdude1 · April 2015

• The automaker can pay its executives whatever it wants. While Treasury owned shares, the pay of GM's top brass has been capped at a percentage of what other companies are paying. Akerson has said the pay cap made it hard to recruit the best talent.

• GM now should escape some, but not all, of the "government motors" slur flung at it by opponents of government ownership in private companies.

"GM will always be 'Government Motors' to the small segment of America that's still upset over the bailout. But those people likely weren't going to be GM buyers anyway," says Jessica Caldwell, senior analyst at Edmunds.com auto research and shopping site.

The Obama administration emphasized today that the loss it took on GM shares was far less costly than allowing GM to fail.

"Inaction could have cost the broader economy more than one million jobs, billions in lost personal savings, and significantly reduced economic production," Treasury Secretary Jacob Lew said in a statement.

GM and Chrysler both went through government-scripted Chapter 11 bankruptcy reorganizations in 2009. Treasury put $12.3 billion into Chrysler and recovered $11.13 billion of that before the books were closed. Chrysler now is majority owned by Italy's Fiat.

A study announced today by the Center for Automotive Research at Ann Arbor, Mich, says the federal rescue of GM saved 1.2 million jobs and preserved $34.9 billion in tax revenue.

dallasdude1 · April 2015

They could have gotten $10 a share more if they waited another year. As of now the stock is rated 9.6 VERY BULLISH by Wall Street.
Top 10 Institutional Holdings by Shares Held
Name Reporting Date Total Holdings Sorted in descending order. Position Value Outstanding
Shares Owned
Harris Associates L.P. 12/31/14 77.0M $2.8B 4.78%
Vanguard Group, Inc. (The) 12/31/14 67.2M $2.4B 4.18%
Franklin Resources, Inc 12/31/14 58.7M $2.1B 3.65%
State Street Corporation 12/31/14 56.4M $2.1B 3.51%
JP Morgan Chase & Company 12/31/14 54.9M $2.0B 3.41%
Berkshire Hathaway, Inc 12/31/14 41.0M $1.5B 2.55%
Capital Research Global Investors 12/31/14 39.7M $1.4B 2.47%
BlackRock Institutional Trust Company, N.A. 12/31/14 36.9M $1.3B 2.29%
Invesco Ltd. 12/31/14 25.6M $931.9M 1.59%
Capital World Investors 12/31/14 21.0M $763.5M 1.30%

Top 10 Mutual Fund Holdings by Shares Held
Name Reporting Date Total Holdings Sorted in descending order. Position Value Outstanding
Shares Owned
Franklin Custodian Funds-Income Fund (i) 12/31/14 27.9M $1.0B 1.74%
Vanguard Total Stock Market Index Fund (i) 12/31/14 21.6M $787.8M 1.34%
Investment Company Of America (i) 12/31/14 19.0M $692.3M 1.18%
Vanguard 500 Index Fund (i) 12/31/14 14.6M $532.9M 0.91%
SPDR S&P 500 ETF Trust (i) 02/28/15 13.9M $505.7M 0.86%
Vanguard Institutional Index Fund-Institutional Index Fund (i) 12/31/14 13.8M $502.4M 0.86%
Income Fund of America Inc (i) 12/31/14 13.4M $487.8M 0.83%
Capital World Growth and Income Fund (i) 12/31/14 10.2M $372.0M 0.63%
JP Morgan U.S. Large Cap Core Plus Fund (i) 02/28/15 9.7M $354.0M 0.60%
Janus Twenty Fund (i) 12/31/14 7.4M $268.5M 0.46%

dallasdude1 · April 2015

If they had never sold GM Hughes and EDS for billions, which they purchased for millions, they would have been better off than Ford. Yet today the activist are eyeing the $27 billion plus “fortress balance sheet.” Wit Wilson being the worse.
They certainly did put the Japanese sponsored Toyota in their place?

Cheap Valuation
Even as its financial health has improved, GM is still vulnerable to an activist because of its valuation as it shakes off government control, Wilson said.
GM’s $42.3 billion enterprise value as of yesterday was equal to 3.1 times analysts’ average estimate for this year’s earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg. That multiple trails all but one automaker larger than $5 billion, a group which fetches a median of 9 times Ebitda, the data show.
Today, GM shares rose 12 cents to $37.67.
The largest U.S. automaker may make an announcement at the beginning of 2014 about its plans for the cash stockpile, said Scott Schermerhorn, chief investment officer of Concord, New Hampshire-based Granite Investment Advisors Inc., which oversees about $560 million including GM shares. If the company doesn’t address it soon enough, an activist investor could step in to accelerate the process, he said.

dallasdude1 · April 2015

Granite Investment Advisors Inc, who has less than $2 million in GM wants a piece of that $27 Billion? Get in line........lol
https://holdingschannel.com/bystock/?symbol=GM

dallasdude1 · April 2015

Sad to hear any Costco employee is paying union dues, their prior CEO was and trained his replacement to be straight shooters. businessinsider.com/costco-pays-retail-employees-20-an-hour-2014-10://

dallasdude1 · April 2015

Costco founder and former CEO Jim Sinegal earned a $350,000 salary compared to Wal-Mart's CEO Michael Duke, whose salary was $1.3 million. The company's new CEO Craig Jelinek makes more- $650,000, since taking over in 2012. http:/abcnews.go.com/blogs/politics/2014/01/why-20-89-explains-president-obamas-love-for-costco//

dallasdude1 · April 2015

WMT Price Performance (Last 52 Weeks) +3.58%

COST Price Performance (Last 52 Weeks) +37.24%

I'm adding to my position in COSTCO

gagrice · April 2015

GM buyers beware. Still hiding behind the Federal Government skirts. Sales are down. Now the 3rd largest automaker. If not for China they would lose to Ford. China sales are their only profitable market.

http://money.cnn.com/2015/04/15/news/companies/gm-bankruptcy/

tlong · April 2015

The WSJ just ran an article that GM CAN hide behind the BK to limit claims on the ignition switches. The taxpayer saved GM's LIFE but GM can avoid compensating for the LIVES lost due to their willful negligence. Yet the UAW still got their golden payouts during the BK.

roadburner · April 2015

YAY!!!

gagrice · April 2015

I am just thankful I got rid of my 2005 GMC Sierra Hybrid. I did not take a big loss as the buyer wanted a hybrid PU and they only made a few of them. I did not like it. Hopefully the new owner did not have any issues after the BK. He would be SOL with GMC, not supporting pre BK vehicles. We have rehashed the BK too many times and no one has changed their mind. And DD is right, I would not likely ever buy another GM. And I was a good customer From 1988 to 2005. The UAW 1998 strike was my turning point being a supporter of that union. From that time on they were just greedy union thugs in my book. And I am a life long Union member with 37 years in the Teamsters. We never went on strike. We made the companies money and they treated us well on our contracts.

gagrice · April 2015

I would say the Costco workers that are Teamsters are probably treated better than the Non-Union workers.
Lots of part time at the non union stores.

http://teamster.org/content/costco-workers-stand-together

marsha7 · April 2015

Dallasdude:

"When Georgia gave incentives to Kia, keep in mind that one of the main incentives is almost always a break on property taxes for 10 years. That is what we call an indirect tax on the taxpayers"

I believe you are absolutely correct. But I stated earlier (this is my belief, I do not have facts to back it up) that I would guess that the land that Kia received was probably either farmland or wilderness, both of which bring in virtually NO property taxes to the county...by giving Kia land that (I assume) produced little revenue, the county and state lost nothing...so the property then gains them no taxes for 10 years...so what???...they now have the factory, they probably have better paying jobs in the area than they have had since GA was a colony, plus all the satellite businesses that grow up around it (dry cleaners, restaurants, pizza places, etc.) bring in better payroll (and payroll taxes), sales taxes (when no one was there, sales taxes were zero in the woods), housing, etc.

I see it as a win-win for GA with absolutely zero downside, as the land was worthless anyway...

Now, if you told me they gave Kia land right out of downtown Atlanta, and tore down the AT&T building for Kia, I would say you are right...but I believe West Point was one of those areas of GA that probably had no value to start with, and giving it to Kia was the best use of "seed money" that could be done...

berri · April 2015

Atlanta seemed to be early in their Korean relationship. Korean Air was an early code share with Delta. Unfortunately, that airline had enough safety issues that Delta dumped them for awhile. But some former Delta pilots were involved in turning KAL around and they've been back to ATL nonstop for awhile now. So I guess a HyunKia plant there kind of goes with that.

Not sure, but is the Ford plant by the airport still operating and does GM still have the Doraville plant near Atlanta?

Michaell · April 2015

berri said:

Atlanta seemed to be early in their Korean relationship. Korean Air was an early code share with Delta. Unfortunately, that airline had enough safety issues that Delta dumped them for awhile. But some former Delta pilots were involved in turning KAL around and they've been back to ATL nonstop for awhile now. So I guess a HyunKia plant there kind of goes with that. Not sure, but is the Ford plant by the airport still operating and does GM still have the Doraville plant near Atlanta?

I'm pretty sure the ford plant closed. Not sure about the GM plant there.

robr2 · April 2015

According to wiki:

Ford Atlanta Assembly was closed in 2006. The area is being redeveloped as Aerotropolis Atlanta, a mixed use development. Porsche has moved it US headquarters to that area.

GM Doraville was closed in 2008. A plan to redevelop the area as a mixed use, transit oriented development fell through in 2010. It does look like it is now under development.

marsha7 · April 2015

Porsche had its HQ in Sandy Springs, but has moved to the Ford plant near the airport because, I believe, it has a test track...who wouldn't want to spend part of their day test driving a Porsche???

GM Doraville may become, I think, part of Tyler Perry Studios...articles keep popping up in the news, but nothing firm has been done yet, or so I believe...

robr2 · April 2015

There was not a test track at the old Ford facility. Porsche built the track at their new headquarters in order to provide a customer driving experience. It starts at $300 for a 90 minute session.

As for Doraville and Tyler Perry Studios, my understanding is that Perry bought 300 acres at Fort McPherson in SW Atlanta close to his existing facility in order to build 16 studios. There was great public outrage at the sale because for the past 7 years plans had been developed for a new neighborhood there which is 4 miles from downtown ATL. Another article I read shows that a company called "Third Rail Studios" is planned for the Doraville area:

http://www.11alive.com/story/news/local/doraville/2015/04/05/movie-studio-to-anchor-gm-redevelopment/25335345/

Interesting at the number of studios being built in Georgia. Here in MA, there is only one sound stage but about 7-10 films and tv shows filming at any given time. Georgia, like Massachusetts, has a tax credit for film and tv production.

andres3 · April 2015

dallasdude1 said:
• The automaker can pay its executives whatever it wants. While Treasury owned shares, the pay of GM's top brass has been capped at a percentage of what other companies are paying. Akerson has said the pay cap made it hard to recruit the best talent.

• GM now should escape some, but not all, of the "government motors" slur flung at it by opponents of government ownership in private companies.

"GM will always be 'Government Motors' to the small segment of America that's still upset over the bailout. But those people likely weren't going to be GM buyers anyway," says Jessica Caldwell, senior analyst at Edmunds.com auto research and shopping site.

The Obama administration emphasized today that the loss it took on GM shares was far less costly than allowing GM to fail.

"Inaction could have cost the broader economy more than one million jobs, billions in lost personal savings, and significantly reduced economic production," Treasury Secretary Jacob Lew said in a statement.

GM and Chrysler both went through government-scripted Chapter 11 bankruptcy reorganizations in 2009. Treasury put $12.3 billion into Chrysler and recovered $11.13 billion of that before the books were closed. Chrysler now is majority owned by Italy's Fiat.

A study announced today by the Center for Automotive Research at Ann Arbor, Mich, says the federal rescue of GM saved 1.2 million jobs and preserved $34.9 billion in tax revenue.

1. Notice that the positive figures for the GM bailout come from a lobbyist group based in Michigan.

2. Notice the Obama administration doesn't provide figures for how far "less costly" alternatives to bailouts would have been.
3. Notice the Treasury Secretary who works for Obama & Bush used the word "could" instead of "would" for describing the fear mongering arguments for the bailouts.
4. I "could" have bought GM for $50 instead of the taxpayers for $50 billion. Saving the taxpayers $49,999,999,950 dollars. It's more than nothing and what I was willing to pay for the company at the time. If there were better private offers GM should have taken them.
5. I "could" say the gov't could have invested the $60+ billion in high performing companies instead of Chrysler and GM and come out way ahead instead of way behind; dwarfing even the Michigan propaganda group's dream-like figures.
6. You say they "could" have gotten 10% more if they had waited another year, but with inflation, is that making much? Also, I "could" say if they sold at GM's lows they'd of easily gotten 10% less than they did when they sold. You can't perfectly time the market, and the longer you wait, the greater the opportunity and inflation costs.

gagrice · April 2015

dallasdude1 said:
• The automaker can pay its executives whatever it wants. While Treasury owned shares, the pay of GM's top brass has been capped at a percentage of what other companies are paying. Akerson has said the pay cap made it hard to recruit the best talent.

I thought it a bit ironic with the Chairman of the VW Group, Piech getting forced out, his salary was $1.6 million. The new CEO Barra at government motors gets $15.8 million. Poor old Akerson under the thumb of Obama was only able to eke out $9 million in 2013. That with a UAW member or members on the BOD. It looks like the German Unions are more adept at being company board members.

imidazol97 · April 2015

gagrice said:
I thought it a bit ironic with the Chairman of the VW Group, Piech getting forced out, his salary was $1.6 million. The new CEO Barra at government motors gets $15.8 million. Poor old Akerson under the thumb of Obama was only able to eke out $9 million in 2013.

The US CEOs of most companies are paid much more out of proportion to the real workers in the companies compared to the rest of the world. Need to fix that.

stever · April 2015

Piëch was the board chairman. "VW’s Winterkorn Earns $23 Million as Best-Paid German CEO". He's the number 2 but he's really the guy that works at running the company every day. (Bloomberg)

robr2 · April 2015

gagrice said:
dallasdude1 said:
• The automaker can pay its executives whatever it wants. While Treasury owned shares, the pay of GM's top brass has been capped at a percentage of what other companies are paying. Akerson has said the pay cap made it hard to recruit the best talent.

I thought it a bit ironic with the Chairman of the VW Group, Piech getting forced out, his salary was $1.6 million. The new CEO Barra at government motors gets $15.8 million. Poor old Akerson under the thumb of Obama was only able to eke out $9 million in 2013. That with a UAW member or members on the BOD. It looks like the German Unions are more adept at being company board members.

Where did you get the $15.8 million for Bara? What I've read says she is getting $1.6 million base, a possible $2.8 million in incentives, and $10 million in long term compensation (stock awards). The last item only works if the stock performs.

As for Piech, he may only earn $1.8 million but he personally owns 6.6% (appx 19.5 million shares) of VW and thus earns plenty via dividends (€4.00/share + this year) - close to $78 million this year in dividends.

gagrice · April 2015

I am sure Piech is doing fine. Here is the story on Barra.

DETROIT (AP) – General Motors CEO Mary Barra’s compensation more than tripled in 2014 to $15.8 million in her tumultuous first year in the automaker’s top job.

Barra and other top executives got only 74 percent of the cash incentives they could have received, because GM fell short of goals set by the board. But her stock awards more than doubled from 2013 when she was senior vice president of for product development and purchasing.

http://detroit.cbslocal.com/2015/04/25/mary-barras-compensation-triples-to-15-8m-in-1st-year-as-gm-ceo/

robr2 · April 2015

Got it. But note, the $15.8 was not her salary. Per the article, her salary was $1.7 and she got an incentive bonus of $2 million. The rest was in stock and some of it doesn't vest unless certain targets are met. Also the total number is based on an AP formula, not an actual number.

fintail · April 2015

How much of Piech's stock is inherited? He is family, remember, Ferdinand Porsche is his grandpa. I don't think his fortune solely came from the ridiculous idea of overpaying suits to "attract and retain talent" or whatever lies the good old boys like to use here.

robr2 said:

As for Piech, he may only earn $1.8 million but he personally owns 6.6% (appx 19.5 million shares) of VW and thus earns plenty via dividends (€4.00/share + this year) - close to $78 million this year in dividends.

tlong · April 2015

fintail said:
How much of Piech's stock is inherited? He is family, remember, Ferdinand Porsche is his grandpa. I don't think his fortune solely came from the ridiculous idea of overpaying suits to "attract and retain talent" or whatever lies the good old boys like to use here.

Some of the regulars in these forums were commenting and advising GM before during the BK. I suggest that our conversations were providing "industry and consumer talent" and "market perspectives", and I strongly suspect and have data to support that one key poster who disappeared right at the point of BK was a GM insider who was paid to be on these forums. Therefore we should be due compensation plus back interest in an amount of $10M each, which is a bargain relative to the value obtained by Wagoner, et al.

robr2 · April 2015

fintail said:
How much of Piech's stock is inherited? He is family, remember, Ferdinand Porsche is his grandpa. I don't think his fortune solely came from the ridiculous idea of overpaying suits to "attract and retain talent" or whatever lies the good old boys like to use here.

robr2 said:

As for Piech, he may only earn $1.8 million but he personally owns 6.6% (appx 19.5 million shares) of VW and thus earns plenty via dividends (€4.00/share + this year) - close to $78 million this year in dividends.

Oh I know the stock is most likely inherited. IMHO, the post that generated my reply was trying to show that Bara was "overpaid" in comparison to Piech. The point I was trying to make is that "salary" isn't always the prime motivator for the titans of industry. Bara has to rely on income. Piech has the luxury of dividend income and his real motivator is family legacy.

fezo · April 2015

Roadburner - Are any of your BMWs from South Carolina?

I've got four Japanese branded cars. Only one was made in Japan. My Mazda was bit only made in Michigan but by the UAW.

marsha7 · April 2015

robr2

There was not a test track at the old Ford facility. Porsche built the track at their new headquarters in order to provide a customer driving experience. It starts at $300 for a 90 minute session.

Thanks for the information correction...

roadburner · April 2015

fezo said:
Roadburner - Are any of your BMWs from South Carolina?

I've got four Japanese branded cars. Only one was made in Japan. My Mazda was bit only made in Michigan but by the UAW.

No, but the X3 was built in Graz Austria(by Magna Steyr) and the 328i was built at BMW's Rosslyn plant in South Africa...

fintail · April 2015

Good point about the family legacy, I am pretty sure Piech would do it for free, if it came to that.

I was reading it as Piech's earnings being used to counter data that American execs make huge amounts more than their peers in competitive nations, and often don't deliver more than becoming one trick ponies who just cut costs - at all costs- and call it innovation. And huge sums must be paid to attract and retain that talent.

I almost see Barra as kind of a scapegoat, thrown into a position when things are bad.

robr2 said:

Oh I know the stock is most likely inherited. IMHO, the post that generated my reply was trying to show that Bara was "overpaid" in comparison to Piech. The point I was trying to make is that "salary" isn't always the prime motivator for the titans of industry. Bara has to rely on income. Piech has the luxury of dividend income and his real motivator is family legacy.

fintail · April 2015

I often think random enthusiasts and hobbyist analysts could do no worse than the "leaders" with their huge salaries and lack of real world accountability. Insiders are often good, but now and then an outsider can help. GM seems to have a cradle to grave system that prevents such an idea.

tlong said:

Some of the regulars in these forums were commenting and advising GM before during the BK. I suggest that our conversations were providing "industry and consumer talent" and "market perspectives", and I strongly suspect and have data to support that one key poster who disappeared right at the point of BK was a GM insider who was paid to be on these forums. Therefore we should be due compensation plus back interest in an amount of $10M each, which is a bargain relative to the value obtained by Wagoner, et al.

fezo · April 2015

Oh, I agree. When is the last time we had a real car guy running something? Bill Ford is a car guy but not one who could really run the show.

Bob Lutz had styling down pretty well but to me fell down on performance.

United Automobile Workers of America (UAW)

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