Ontario won't press automakers on executive compensation
WINDSOR — Ontario will not use its shareholder status to press taxpayer-funded General Motors and Chrysler Group LLC to release details on compensation paid to its board members and executives, Sandra Pupatello, the province's minister of economic development and trade, said Thursday.
"If I were in charge of their PR department I think I might have chosen to do this a little differently because the perception is often as impactful as the reality," she said. "So, they may choose to do this because just in the spirit of being thankful that we've all been helping. But they're not obligated to."
Pupatello was responding Thursday to growing calls on GM and Chrysler — recipients of more than $14 billion in federal and Ontario government loans — to disclose salaries of their top executives. Although GM has released details of compensation for its board members, Chrysler has refused to follow suit, calling the information "confidential."
Pupatello also defended the base payment of $200,000 to Carol Stephenson, board appointee of Canada and Ontario.
"I think it's probably what is very typical at that level for this size of a corporation," she said.
"And, right now, there's a lot riding on these board members doing a very good job and due diligence. And the governments are going to rely on these people and they've been selected because of the kind of expertise they bring. Carol has very good reputation and we're going to be exacting that reputation in this position."
But NDP Leader Andrea Horwath said taxpayers have the right to know full details of how the auto companies are spending their dollars.
"The bottom line is we now own parts of these companies — whether we own one per cent, two per cent or 30 per cent — is irrelevant," said Horwath.
"The bottom line is it's taxpayer dollars that are shoring up these companies and by virtue of our participation in those companies we have a right to know what the executive compensation packages are and what the perks are members of the board are receiving."
The federal and Ontario governments have provided U.S.-based parents of GM and Chrysler with loans to help keep the auto companies from going under. The governments own two per cent of Chrysler and almost 12 per cent of GM.
GM Canada has said it cut executive salaries by 10 per cent, reduced pay for salaried staff and trimmed benefits and pension plans as part of its restructuring.
It also said that "due diligence conducted by all governments in advance of their support and investment in GM, appropriately included a comprehensive review and careful scrutiny of compensation for hourly and regular salaried employees, and in particular compensation for GM's executives.
"In the case of GM Canada executives and board members, the compensation is not at a level which would require public disclosure based on the agreed terms and conditions between GM and all the governments," it added.
Excuse me? We the taxpayers are basically being told that it is none of our business and leading the way is Sandra "photo op" Pupatello. What in the blue hell is going on here? We funded this bail out, as in we the taxpayers and you'd think that we would have a right to know what exactly our money is being spent on. I guess we only get a sneak peak as it was revealed that Carole Stephenson, dean of the Ivey School of Business at the University of Western Ontario sits on the GM board and earns $200,000 and a company vehicle all the while retaining her post as Dean at the university. However, Chrysler has refused to reveal compensation for its board of directors. As well, both companies have refused news media requests to release details of salaries of their Canadian CEO's.
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