AFSCME 3357-HOF'S BLOG

Chrysler Turns Down Government Loan
- Instead of Capping Executive Pay

At the same time Chrysler LLC is telling the Canadian Auto Workers that they must cut their pay by $19 per hour, CNN has published information that Chrysler Financial turned down a government TARP loan because accepting the money would have meant putting an unacceptable cap on executive pay.

(Uupdate) The Detroit Free Press is more specific about what happened. According to the DFP, TARP requires that the top 25 highest paid employees sign waivers that they won't sue the government and the company if their compensation is reduced as a condition of government aid. Chrysler did not provide waivers from all of the top 25 executives.