Now this is a bit of a difficult topic. While there was a lot of hell breaking loose over Wall Street and its compensation structure -- specifically over bonuses -- after the government mandated bailout, no one seems to utter a peep when it comes to Detroit and the automobile business.
Perhaps its because it isn't a significant chunk of an individual's take-home pay but this is a question we have to ask, particularly when it involves General Motors.
**Full disclosure: I am IN favor of profit-sharing
That's because it looks like GM is going to leave the American taxpayer on the hook for more than $12 billion dollars after its bouncy IPO.
And here's the difference between the Wall Street banks and GM -- The banks paid back their loans in full and actually MADE the government money.
So, what do you think of Detroit's bonuses now?
Profit-sharing bonuses for United Auto Workers’ members at Ford Motor Co. and General Motors Co. are expected to be at least as large as last year’s payout at General Motors and larger than the year-ago bonuses paid at Ford. Approximately 55,000 GM hourly workers and 40,000 Ford employees are in line for the payments.
GM workers can expect bonuses of between $5,500 and $7,000, and Ford’s employees could receive a payment of more than $8,000 each, according to a report in The Wall Street Journal. The payments are based on a formula that gives workers a $1 bonus for every $1 million in North American operating profit at the two companies.
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