Chrysler execs to get retention bonuses: report
DETROIT (Reuters) - Even as Chrysler LLC cuts thousands of jobs and seeks federal aid to survive, the company is in the awkward position of paying about $30 million in retention bonuses to keep top executives, The Detroit Free Press reported on Friday.
The bonuses are owed under its contracts with about 50 executives, based on a retention incentive plan crafted early last year by former German parent Daimler AG when it was preparing to sell the Chrysler unit, the newspaper said.
A Chrysler spokeswoman did not immediately return a phone call seeking comment.
At least six Chrysler executives are due to receive bonuses of more than $1 million apiece to stay through August 2009, the two-year anniversary mark of when private equity firm Cerberus Capital Management bought Chrysler, the report said.
The bonus plan includes $1.89 million for manufacturing chief Frank Ewasyshyn, $1.8 million for product development chief Frank Klegon and $1.63 million for Steven Landry, executive vice president of North American sales, the report said.
Nancy Rae, Chrysler executive vice president for human resources and communications -- who has been promised $1.66 million in retention bonus --told the newspaper the move made sense at the time to ensure potential buyers that key Chrysler executives would remain in place after a sale.
She acknowledged that the bonuses could be seen as controversial now, the paper said.
(Reporting by Poornima Gupta, editing by Matthew Lewis)
