Chrysler execs to avoid Federal limits?

Reports from Auburn Hills claim that Chrysler executives, who are currently figuring out ways to avoid their obligations to suppliers, banks, and the retired engineers who created the company’s glory days, have already found a way around Federal limits on executive compensation: they will be employed by Fiat, and “loaned” to Chrysler. That will allow them to maintain their lavish salaries as others sacrifice.

The government has a limit of $500,000 per year on executive compensation for auto companies receiving Federal loans.

In 2007, U.S. median household income (including two incomes for many families) was just over $50,000. Fewer than 2% of families earned over $250,000. 20% earned under $19,178. The median income for Michigan is was just under $48,000.

The prior-contract UAW wages averaged around $28 per hour, or around $56,000 per year.

Note: Bob Nardelli refuted this story on May 15. “Chrysler understands the limitations on compensation for senior executives during the term of the government loans. Chrysler has and will continue to fully comply with all conditions and legal requirements as it relates to executive compensation matters.”