GM CEO quits. Does that count as job creation?

Fritz Henderson, the man with the 2nd least desirable job in the US*, has quit or been pushed after failing to turn around the troubled automaker in less than 6 months.

What? I don’t really know. He or an underling managed to screw up the sale of Opal, Saab, Saturn and any other part of the company vaguely attractive enough for someone to spend money on. Plus, lets face it, Fritz is not a really marketable name.

Company officials described the decision for Henderson to resign at "mutual." I have to wonder if some of that mutuality had to do with Fritz screaming, “Free at last! Free at last! God almighty I’m free at last.” as he left the office today.

It is worth noting that the people who hired Henderson did so with very real doubts. Speaking last month Steven Rattner, head of the Obama auto task force, had this piece of high praise for Henderson “He’s shown that he can manage.” In what has to be one of the least surprising opinions ever offered on the auto industry, Rattner said GM and Chrysler “were some of the worst-run companies I’ve ever seen in my life.”

 

*1 = US President

How much should someone be paid to bankrupt a company? A shopper’s guide

“It’s in the best interests of taxpayers to have Jamie Dimon running J.P. Morgan. They should want to have the best people out there running these banks, and I’m not sure capping pay is the way to do that.” – Jeffrey Immelt, CEO of GE, on President Barack Obama’s proposal to cap pay for executives.

Hard to know what the CEO of a company that has lost 2/3rds of its share value in 12 months means by “best people.” Certainly Dimon looks good in comparison to Immelt. JPMorgan is down slightly less than half over the same period. Still I think it is in the taxpayers best interest to pay as little as possible for incompetence of this magnitude. George Bush, after all, was paid a mere $200,000 a year.

pay-chart

Compensation numbers can be found here.

During the pet-food-poisoning scandal it was revealed the only difference between many top-shelf brands and their down-market competitors was the labels. I believe the same principle can be applied here.

How about this for a sign: “Will wreck your business for food.”

Here are the key housing bailout questions no one is asking

Another one from BlownMortgage.com:

Here’s a heretical notion: How much CEOs get from the bailout doesn’t matter. It’s a smokescreen, red meat being tossed to the public to make it seem as though the bad guys won’t get away scott-free.

While limits on pay packages for executives whose firms seek assistance from the government will be part of the whatever settlement gets reached, it will have no real impact on the bailout. But it will give the politicians something to beat their chests about and say that they have stood up to Big Business.

Click on the link to read the rest.