Driving bankers’ bonuses off the front page

That’s what government funds are for

Rumors today suggest that GM and Chrysler will award their employees with bonuses of up to 50% of base pay.

The VoxSapiens team assumes that bankers are breathing a sigh of relief at this news.

All three automotive companies have refused to reveal details of the scale of the bonuses. But many news media outlets are reporting insider knowledge. For example Bloomberg reports that “GM plans to pay bonuses to most managers equal to 15 percent to 20 percent of their annual salary and as high as 50 percent to less than 1 percent of its 26,000 U.S. salaried employees … bonuses for Chrysler’s 10,755 salaried workers will average about $10,000, with a small group getting as much as half of their salary … Ford, the only U.S. automaker to avoid bankruptcy in 2009, is expected to pay bonuses equal to 10 percent or more of base pay to some salaried staff.

At VoxSapiens we await the full explanations from companies that only exist because the lender of last resort advanced funds when no other lender would provide funds at an affordable rate.

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