Top Chrysler executive paid $20.7 bonus

Feb. 28, 2008 at 2:05 PM   |   0 comments

AUBURN HILLS, Mich., Feb. 28 (UPI) -- Former DaimlerChrysler AG executive Tom LaSorda received $20.7 million for his help selling a majority of the company last August, it was reported Thursday.

Cerberus Capital Management acquired control of DaimlerChrysler on Aug. 4, leaving Daimler with 19.9 percent of the company. As part of the deal, LaSorda resigned from the DaimlerChrysler management board and was named Chrysler's president and vice chairman.

The large bonuses, revealed by Wednesday's filing at the U.S. Securities and Exchange Commission, had drawn criticism from the United Auto Workers last August, although the exact amount was unknown.

Restructuring at Chrysler after the deal resulted in a reported $2.9 billion in losses in the two months following the transaction.

Chrysler denied the loss, claiming it was profitable during that period, The Detroit News reported.

"Since August and the return of Chrysler as an independent company, we have not only been meeting, but in many cases exceeding all key metrics," company spokesman David Barnas said in a statement.

Topics: Tom LaSorda
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