Less than two years after they exited bankruptcy, Chrysler Group and General Motors (GM) will soon distribute bonus payments to salaried employees in recognition of their efforts to help revive the once-flagging Detroit automakers.

About 26,000 white-collar workers at General Motors will see performance bonuses of 4% to 16% of their base salaries, the company said late Thursday, but a small group could see payments that are equal to as much as 50%.

In its statement, GM said the payments would be based on each employee's performance and that of the company's, but would not give an average for the payments. A GM spokesman declined to comment further, Bloomberg News reported.

Chrysler, meanwhile, may pay its bonuses to its salaried staff as early as Friday. The amounts to be paid to the Auburn Hills, Mich.-based company's nearly 11,000 salary workers will average about $10,000, Bloomberg reported.

As with GM, a small number could receive bonuses as large as half their base salaries, the news agency reported, citing people familiar with the matter.

The payments are likely to anger unionized workers at the two automakers, Gary Chaison, professor of industrial relations at Clark University in Worcester, Mass., told Bloomberg. "If these kinds of bonuses are paid to salaried workers, then the union's demands will increase, knowing management can't claim an inability to pay."

Late last month, Chrysler said union workers would receive bonuses totaling $750 each. The amount was based on the $850 million in operating profit Chrysler earned last year. After accounting for interest and other charges, the automaker actually lost lost $652 million in 2010.

Union workers at GM are expected to receive payments of about $3,000 each, equal to about 5% of the workers' pay, Bloomberg reported.

GM and Chrysler were both recipients of billions of dollars in federal government loans under of the Troubled Asset Relief Program, which restricts what they can pay to their top executives.


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fergie2065

Where is my Bonus??

All of us Stock Holders who have GM Stock worth $.08??

I am just an old school teacher and trying to live off of $.08 stocks.

I don't have any money to buy the New GM Stock, I lost all my money on the Old GM Stock!!!!

February 15 2011 at 10:25 AM Report abuse rate up rate down Reply
sh78000

how about pay the bond holders who got screwed by only getting 29 cents on the dollar that was owed to them!!! How illegal can you get!! Bonds hold reference over all debt when a company files bankruptsy.

February 14 2011 at 6:19 PM Report abuse +2 rate up rate down Reply
choicerose91

I wish everybody would stop their crying about the Auto Companies quit your jobs and go to work building cars, butt most of you could'nt hack it!!!!!!!!!!!!!!!

February 14 2011 at 4:04 PM Report abuse -1 rate up rate down Reply
choicerose91

I wish everybody would stop their crying about the Auto Company quit your jobs and go to work for car companies most of you could'nt hack it!!!!!!!!!!!!!!!

February 14 2011 at 4:01 PM Report abuse -1 rate up rate down Reply
charlesc929

should show a profit, after trashing pensions and laying it off to the u.s.government to pay it, they damn sure should show a profit--they stole most of it from the workers that kept them alive for years.

February 14 2011 at 2:47 PM Report abuse +1 rate up rate down Reply
Infidel

This is the outcome,when Idiots are in Government!

February 14 2011 at 2:44 PM Report abuse +1 rate up rate down Reply
My Name

Well Tomozzy, its time tosign off, the board has been closed. I'll touch swords again with you another day.

February 14 2011 at 2:21 PM Report abuse +1 rate up rate down Reply
nordach

Could someone please tell me how a company (Chrysler) can pay BONUSES when the company lost 652 MIllion last year? UNBELIEVABLE.
It would seem logical to repay their government loans rather than give bonuses.
Perhaps this should have been in place when the loan was issued, "PAY BACK THE GOVERNMENT LOAN BEFORE ANY BONUSES"

February 14 2011 at 2:07 PM Report abuse rate up rate down Reply
My Name

Again Tomozzy, this is about GM & Chrsler. But since you choose to throw a smoke screen about the most hated segment of the American business sector (after autos). They paid their TARP loans off with money from their operations, except for Citi who paid it back mostly with stock that will dilute shareholders equity. What the big banks have done could have been done by GMAC (remember them?). They were in the financial sector and could have chosen the same route as our beloved banks, instead they chose a bail out (which they have not paid back). But pleasse TomOzzy, let's stick to the subject matter of this forum, the auto industry and focus on FORD, GM & Chrysler.

February 14 2011 at 2:01 PM Report abuse -1 rate up rate down Reply
2 replies to My Name's comment
My Name

Tomozzy: The big banks (the one's paying millions in bonuses) have PAID BACK their TARP money IN FULL with INTEREST.Can GM & Chrsyler say the same?

February 14 2011 at 2:15 PM Report abuse rate up rate down Reply
My Name

TomOzzy: Again you are all over the board. Now its WWII. You don't have a good answer or explanation for this do you TomOzzy? WWII, isn't that when the Banksters bombed Pearl Harbor?

February 14 2011 at 2:18 PM Report abuse -1 rate up rate down Reply
robgersh

buy a FORD

February 14 2011 at 1:56 PM Report abuse +2 rate up rate down Reply
1 reply to robgersh's comment
gedking

jUST WHAT HAPPENED TO THE LITTLE INVESTERS WHO BOUGHT gm STOCK AND NOW WORTH NEXT TO NOTHING.

February 14 2011 at 9:34 PM Report abuse +1 rate up rate down Reply