Saturday, February 20, 2010

GM's Henderson Gets 400 Times More than Minimium Wage


News Item: GM hires ex-CEO Fritz Henderson as a consultant for $59000/month for 20 hours service.

I noticed Fritz makes $2954/hr.  I was getting all set to be outraged, because afterall GM is bankrupt and government controlled and all.

On the other hand, the consultants we hire at BASF got paid alot (back before the recession when we used to have them.) It was not unusual to pay $3000/day, which is only eight times less than Fritz is getting.

And, Fritz is getting less than current GM CEO Ed Whitacre is getting this year, $4326/hr, although Ed's base salary is only $725/hr.  You might say that CEO's always get paid a lot, and big time CEO's do, however the average salary for CEO's is much less, $107/hr according to the Bureau of Labor Statistics (BLS). One sixth of Ed's base salary, and one 40th of Ed's salary in 2009.

Surprisingly the BLS also has pro athletes, who make $23/hr, which is a lot less than Tiger Woods got in 2008 at $38,000/hr. (He is expected to make $2400/hr in 2010.)  I suppose that there are a lot of struggling lady golfers and minor league baseball players bringing the average down.

Chemists are interesting to me for obvious reasons, and according to BLS, they make $33/hr vs $42 according the ACS, the American Chemical Society -- whose membership skews toward those with advanced degrees.  Seventy-seven times less than Fritz  Henderson.

Two more: teachers make more than chemists at $34/hr. Finally legislators make only $27/hr.

The federal minimum wage is $7.25; four hundred times less than Fritz Henderson makes.