He Makes How Much An Hour?!?!?!

It’s a sad thing that there’s so many stories in the press about companies biting the bullet and going into adminstration and bankruptcy proceedings. Earlier in the financial turmoil it was the banks and financial houses and now it’s the automakers.

One of the things that infuriates me is how much the people that get bought in to clear things up make. All the consultants that arrive on six-figure salaries making absolute fortunes when there’s no money to pay the staff that have had to go looking for extra work.

Take the latest – GM. Their last six months of restructuring and the selling off bad assets during bankruptcy is actually going to cast them BILLIONS. Since last year, consultany firms AlixPartners and Evercore  Group LLC have been paid $68.2 million.

The new chief restructuring officer is actually paid $835, AN HOUR!  Anyone want to do some simple maths? Let’s say he works an 8 hour a day (a tidy $6680) each week ($33,400) for a year and you’re looking at a salary of $1,736,800. In a company that’s filing for bankruptcy. Anyone want to take a guess as to where they can cut some of their money problems?? Maybe some overpaid executives?

What happened to the days of Lee Iacocca who famously drew a salary of just $1 when trying to save Chyrsler. Which he succeeded in probably thanks to the universal approach to sacrifice in the company, cutting those bloated high-end salary.

Seriously, I know there’s plenty of Vauxhall dealers in Kent and across the UK and Europe who would relish that guys weekly salary for a year right now if it meant that GM and, therefore, their dealership had a future.

Is there no common sense left anywhere? It’s like paying a mechanic to furnish his garage in the very latest and most expensive tools and equipment before he even takes a wheel off your car. I sure as hell wouldn’t let that guy service my car.

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