Ousted GM boss to retire with $8.6m

EX-GENERAL MOTORS (GM) boss Rick Wagoner is set to retire with a pension package worth $8.6m (&pound;5.2m), it emerged yesterday, after he was ousted by the Obama administration in March.<br /><br />Wagoner, who ran GM for nine years, will get $1.64m every year for the first five years of his retirement, and an annual yearly pension of $74,030 afterwards.<br /><br />The package, which will take place from 1 August, is 60 per cent lower than it would have been before the embattled carmaker filed for Chapter 11 and saw its assets sold to the new GM.<br /><br />Over the first five years of retirement, Wagoner will be paid almost $8.6m, down from the approximate $23m figure he was entitled to receive at the end of last year.<br /><br />Wagoner made the retirement agreement with the old GM, now renamed Motors Liquidation, earlier this month, but details of his pay-off were only made public yesterday.<br /><br />GM emerged from bankruptcy protection at the start of July as a smaller company, 60 per cent owned by the US treasury. It has taken in $60bn in government funding. As part of its restructuring programme, it is in the process of selling off its GM Europe arm, Opel.<br /><br />Three bidders are in the running for the group: RHJ, Magna International and Beijing Automotive.<br /><br />Before he was fired by the White House-appointed autos task force earlier this year for an insufficiently radical recovery plan, Wagoner had argued that bankruptcy would be a more costly alternative to an expanded version of the bailout that began in the final days of the Bush administration.