AUTOMOBILES: The Boss Says Buy

The Boss Says Buy

Having seen their bonuses evaporate because of poor profits, and up to 10% of their salaries escrowed pending the success of a cost-cutting program, Chrysler's top 100 executives are now being formally "encouraged" by Chairman Lee Iacocca to buy the company's weak stock. The idea is to coax managers to increase their stake in the company's performance.

In an industry legendary for lack of management accountability, Chrysler has been making strong moves to tie executive compensation directly to the company's fortunes. Iacocca is pressing top execs to buy stock equivalent in value to their annual salaries. "I want them to feel...

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