Cramer: Whitacre Should Pay, Not Be Paid, For CEO Job
In Monday's Stop Trading!, Cramer took to task the problem of Ed Whitacre's CEO compensation, as well as stocks he's watching as the corporate jet business makes a surprising rebound.
When he left his former job at AT&T, Ed Whitacre was given one of the biggest retirement packages in history, and as the new Chairman and CEO of General Motors his compensation package is expected to be announced in the next week. This raises the question: how much should be be paid in his new job as CEO?
Cramer points out that Whitacre basically built SBC, the ancestor of AT&T, so he's got some ground-up experience under his belt. "That thing was nothing and he made it into a great company," says Cramer, who thinks that his $158 million 2007 retirement package was warranted, at least in part, due to his success in building the company. Cramer sees Whitacre as a "no-nonsense" guy who will be tough on unions and "do the right thing," and likely be good for the company. However, based upon the hostility in the public focused on highly paid executives and GM's public perception, all of this doesn't exactly matter.
Based in frustration regarding the situation, Cramer said that the only way for Whitacre to avoid public backlash would be for him to pay GM to let him take the job, receiving a negative salary.
Outside of GM, Cramer is focused on companies you can actually trade on right now. He was shocked to hear that the business jet market is on the rebound despite the public outcry regarding the use of corporate jets. Two companies that stand to benefit from increased business in this area are General Dynamics and Texetron, Cramer says.
For Cramer's complete take on Ed Whitacre's CEO compensation, check out the video!
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com