Tuesday, October 25, 2005

US Business Reporting - Got Perspective?

Business reporting sucks post #1
GM CEO Rick Wagoner: "health benefits add a staggering $1,500 to the price of every vehicle GM makes."
GM has 14 employees per car manufactured. Toyota has 7. Toyota manufactures more cars in the U.S.A. than GM. So does Honda.

Well the CEO of Delphi alone, say again, just this one guy costs $2.71 in compensation per vehicle. How many executives get this kind of compensation? Someone want to add it up? How about corporate jet and helecopter expense? How much would you like to bet that these stratospheric expenses from high-flying executives cost as much as the health benefits (and they get these too).

Calculations: 2.4m produced in first 6 months of 2005, doubled then divide into 13,398,000 compensation for this single executive. I couldn't find all of the executive compensation in the statements put on the web. I see them in the ones sent out for investors to vote on. Hmmm, conspicuous by its absence, yes?

Also, interest expense on their debt calculates to $3041.56 per vehicle. Now, if they didn't have these but-I'm-poor-next-to-Bill Gates one-upsmanship $10 million pay packets, maybe they wouldn't need so much debt. They don't seem to be braying about the cost of their debt which is double the healthcare overhead.

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