Porsche CEO Wiedeking defends enormous salary
11-29-07, 05:54 PM
#1
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Porsche CEO Wiedeking defends enormous salary
Porsche CEO Wiedeking defends enormous salary
Posted on Thursday 29 November 2007
Being the CEO of a major car manufacturer is not traditionally considered a job that will net you paychecks on par with Formula 1 drivers. For Porsce CEO Wendelin Wiedeking, however, his salary for last year would cover at least four times Ralf Schumacher’s pay when he was at Toyota. Wiedeking defended his estimated €60 million-€70 million ($89 million -$103 million) salary by pointing to increased corporate profits and bonuses for workers and shareholders.
In his defense, pre-tax profits for Porsche did rise nearly €4 billion from €2.1 billion to €5.9 billion over the past year. Wiedeking is quoted by FT.com as saying, “I think when the company does well then those who have contributed should share in that.” That’s all well and good, but the entire remainder of the board of Porsche earned less than half what Wiedeking did for the year. Workers received bonuses and shareholders received dividends as well, with dividend payments up 145 percent to around €6 per share.
Last year the entire board of Porsche - including the CEO - earned only €42 million ($62 million).
Posted on Thursday 29 November 2007
Being the CEO of a major car manufacturer is not traditionally considered a job that will net you paychecks on par with Formula 1 drivers. For Porsce CEO Wendelin Wiedeking, however, his salary for last year would cover at least four times Ralf Schumacher’s pay when he was at Toyota. Wiedeking defended his estimated €60 million-€70 million ($89 million -$103 million) salary by pointing to increased corporate profits and bonuses for workers and shareholders.
In his defense, pre-tax profits for Porsche did rise nearly €4 billion from €2.1 billion to €5.9 billion over the past year. Wiedeking is quoted by FT.com as saying, “I think when the company does well then those who have contributed should share in that.” That’s all well and good, but the entire remainder of the board of Porsche earned less than half what Wiedeking did for the year. Workers received bonuses and shareholders received dividends as well, with dividend payments up 145 percent to around €6 per share.
Last year the entire board of Porsche - including the CEO - earned only €42 million ($62 million).
http://www.ft.com/cms/s/0/14ad1ca6-9...nclick_check=1
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11-29-07, 06:26 PM
#2
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the guys a bargain. He actually grows his own potatos and gives them as presents..Porsche was 3 days from going belly up until he came around as CEO at only 40 years old back in I believe 1993 or so.....
Seriously, he has guided Porsche perfectly. The car has never sold better, costs were cut and they expanded the range to a SUV, which was a BOLD move. 993 value are rock solid, 996 cars opened the brand to more people than ever.
Then the cars drive just as good if not better. Yeah he milks the 911 with 5,000 variants of it, some people think a P car SUV is nuts and the Boxster/Caymen are not true but CLEARLY people like them.
Like me!!!
Seriously, he has guided Porsche perfectly. The car has never sold better, costs were cut and they expanded the range to a SUV, which was a BOLD move. 993 value are rock solid, 996 cars opened the brand to more people than ever.
Then the cars drive just as good if not better. Yeah he milks the 911 with 5,000 variants of it, some people think a P car SUV is nuts and the Boxster/Caymen are not true but CLEARLY people like them.
Like me!!!
11-29-07, 06:39 PM
#3
Lexus Test Driver
^ I agree. Wiedeking is a bargain. Porsche would be nowhere near where they are today without him. He dissected the Japanese approach to motorcraft (esp. Toyota) and adapted it to a form successful for Porsche.
11-29-07, 11:51 PM
#7
Lexus Fanatic
iTrader: (20)
If you think that's bad, what about the $38 BILLION in bonuses paid on Wall St., averaging $200K each when most of the big companies there are LOSING BILLIONS (and hiding even bigger losses). That's just disgusting as that money is coming out of people's retirement funds.
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11-30-07, 06:59 AM
#8
Keeper of the light
iTrader: (17)
I think he is worth his money, but it is definitely time to cap it off. He's already cutting into shareholders profits, and while he is turning numbers, any more and he'll be the only one making anything.
11-30-07, 08:03 AM
#9
Lexus Test Driver
If you think that's bad, what about the $38 BILLION in bonuses paid on Wall St., averaging $200K each when most of the big companies there are LOSING BILLIONS (and hiding even bigger losses). That's just disgusting as that money is coming out of people's retirement funds.
So I'm not sure why you're saying it's coming out of "retirement funds", because the bonuses are for the employees. Furthermore, only employees of divisions that MADE money for the company are going to receive bonuses as it is. Many of the big firms are taking huge losses and making big writeoffs because of the subprime mortgage burst, and it's like the funds that invested heavily in subprime mortgage markets are going to get a bonus this year. 
Also, keep in mind that most of the big fund companies pay their bonuses entirely in stock and have restrictions on them like limited transferability. So in most cases, the bonus value is going to fall right along with the value of the company.
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