Opel managers get massive $20-30 million Euro bonuses a reward for failure from GM

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Thread: Opel managers get massive $20-30 million Euro bonuses a reward for failure from GM

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    Opel managers get massive $20-30 million Euro bonuses a reward for failure from GM



    FRANKFURT -- General Motors will pay Opel's senior managers million-euro bonuses following the sale of the German brand to PSA Group, regardless of whether the executives remain with the company, a report said.

    GM first confirmed talks to sell its European unit to PSA in February. The companies announced the terms of the deal on March 6.

    Germany's Manager Magazin reported that nine top managers at Opel could collectively share between 20 million and 30 million euros subject to the deal going through.

    Opel declined to comment on the report to Automotive News Europe.

    A completion of the sale is expected by year-end, the publication said, but must still be approved by Germany's anti-monopoly authorities.

    Neumann may leave Opel

    PSA boss Carlos Tavares has said he intends to keep the Opel management structure intact after a takeover.

    Karl-Thomas Neumann, Opel's CEO, has been supportive of the deal, and was quoted as saying it was a chance to "start a new and successful chapter" in Opel's history, by Germany's Bild newspaper.

    However, the Manager Magazin report said it was unsure whether Neumann would now remain at the helm of Opel after the executive divested some of his GM shares over the past few weeks, including stock worth $4.1 million between February 10 and February 21.

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    I am glad GM has got rid of this big $20 billion huge loss making Opel money pit, l wish PSA the best of luck your gonna need it.
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    Re: Opel managers get massive $20-30 million Euro bonuses a reward for failure from G

    It's the way big business works these days - IMO bonuses should be performance-based - during GFC the bankers got bad press for still taking their bonuses despite their failure around the globe.

    In the context of Opel managers - who at GM Detroit agreed these bonuses?

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    Re: Opel managers get massive $20-30 million Euro bonuses a reward for failure from G

    Why does the Big 3 Exe's sitting before Government come to mind? Mulally's answer "No"

    Why the "H" would he? The Pay ='s Performance doesn't work either way. And worse yet, "Nobody seems to get that."


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    Re: Opel managers get massive $20-30 million Euro bonuses a reward for failure from G

    Its also called retainer bonuses. Companies do that so that people do not jump ship because of an ownership change.

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    Re: Opel managers get massive $20-30 million Euro bonuses a reward for failure from G

    Quote Originally Posted by dslay04 View Post
    Its also called retainer bonuses. Companies do that so that people do not jump ship because of an ownership change.
    Why would GM want to pay 20-30 million Euro's to retain this hapless bunch of $20 billion losers, let them wreak havoc on infecting other GM products with Opel huge loss making practices, know-how boredom? If PSA wants them retained let them pay the retainer.

    In reality PSA will more than likely put a lot of their own managers in place to help end the Opel money pit rot, lots of duplicated positions will reduced and Peugeot will be looking to shutter some of the plants those are completely useless have not made a dime in profit in the last two decades, i.e. something that Opel excel at will be a winner so most of these Opel managers will be shown the door not need to have retainers, the rest of the Opel managers that remain will be pleased count themselves lucky they have still got a job.

    If you have got Opel on your CV chances are you won't get employed ever again in the EU become totally unemployable by anybody outside of PSA, as most of European auto industry are all cutting back shedding jobs in Europe at the moment in the race to the bottom to cut costs.
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    Re: Opel managers get massive $20-30 million Euro bonuses a reward for failure from G

    Quote Originally Posted by Oldsmobile stopped View Post
    Why would GM want to pay 20-30 million Euro's to retain this hapless bunch of $20 billion losers, let them wreak havoc on infecting other GM products with Opel huge loss making practices, know-how boredom? If PSA wants them retained let them pay the retainer.

    In reality PSA will more than likely put a lot of their own managers in place to help end the Opel money pit rot, lots of duplicated positions will reduced and Peugeot will be looking to shutter some of the plants those are completely useless have not made a dime in profit in the last two decades, i.e. something that Opel excel at will be a winner so most of these Opel managers will be shown the door not need to have retainers, the rest of the Opel managers that remain will be pleased count themselves lucky they have still got a job.

    If you have got Opel on your CV chances are you won't get employed ever again in the EU become totally unemployable by anybody outside of PSA, as most of European auto industry are all cutting back shedding jobs in Europe at the moment in the race to the bottom to cut costs.
    It was a "hapless bunch of losers" that signed off their contracts - probably the same hapless bunch of losers who signed of the original Fiat alliance deal and failed to spot the buy-out clause.

    Hapless losers only know how to hire other hapless losers.

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    Re: Opel managers get massive $20-30 million Euro bonuses a reward for failure from G

    Bonuses are paid for multiple metrics, quality, profits to name a few. So if you are the head of quality, then your bonus most likely will be based on that vs. profits.

    This sounds more like a retention bonus and quite common (I have experience in acquisitions). You all are making an assumption that all these executives are dolts, maybe they are, maybe they aren't. I don't know. I can't imagine that every single one are totally inept. But see how well Opel does if all of them leave and there is absolutely no direction.

    Now with that said, I think bonuses can be good, but they do provide dis-incentives to focus on critical areas not covered by said bonuses.

    In general I think bonuses are overused and pay out too much.

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    Re: Opel managers get massive $20-30 million Euro bonuses a reward for failure from G

    I didn't read the article but these could also be bonuses or accelerated vesting type provisions in their original contracts that are triggered on an ownership change.

    Keep in mind that GM has been talking about selling Opel on and off for a long time. Any decent exec going into that situation would have wanted some provisions to compensate for the uncertainty introduced by future ownership changes.
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