The following is an excerpt from OpinionJournal.com’s “Best of the Web” written by the editor, James Taranto.
Fix It Again, Tony
“The new Chrysler-Fiat partnership will get around U.S. restrictions on executive pay by having its top officers deemed Fiat employees,” the Detroit Free Press reports:
The new Chrysler is among the first companies to fall under rules outlined in February by Treasury Secretary Timothy Geithner, for companies getting “extraordinary assistance” from the Treasury that would cap pay for top executives at $500,000, excluding restricted shares of stock. The final rules for the limits have not been released. . . .
Fiat CEO Sergio Marchionne has already indicated he will replace Chrysler CEO Bob Nardelli. But under the deal, any of Chrysler’s top officers can be deemed a Fiat employee who’s “seconded” to Chrysler, and therefore take pay from Fiat beyond any Treasury cap.
In our view, this whole deal is an abomination. The government should not be bailing out Chrysler or its unions; if it cannot make cars profitably, it belongs in bankruptcy court.
That said, we have to admire the Chrysler execs’ sense of humor in using Fiat to evade a fiat.
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