Reports: GM won’t give their executives any bonuses for the current year

Reports: GM won’t give their executives any bonuses for the current year

New York Times has reported in a news item that the world’s largest automaker General Motors has decided to not give any bonuses to their top executives for the second consecutive year.

The company is struggling in their domestic market as they face massive challenge from Japanese automakers including Toyota and Honda.

GM posted huge losses in 2005 but have improved their financial position in 2006. However, it is still not good enough and the company is unlikely to give out bonuses to top bosses.

GM spokeswoman Renee Rashid-Merem was quoted as saying that this decision would affect around 20 people, including Chief Executive Rick Wagoner and Vice-Chairman Robert A. Lutz.