Cramer's Stop Trading! Will Ed Whitacre Get Paid? (1/25/10)

Includes: GD, T, TXT
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday January 25.

AT&T (NYSE:T), General Dynamics (NYSE:GD), Texetron (NYSE:TXT)

Ed Whitacre, who basically made AT&T (T) what it is today, is now taking the reins at General Motors, with a significant amount of controversy over how much the new CEO will be paid. Cramer thinks Whitacre richly deserved his retirement package of $158 million in 2007 when he left AT&T, even though the package is one of the most expensive in corporate history. "That thing was nothing and he made it into a great company," Cramer said. Even though Whitacre will doubtless perform wonders at GM and will keep unions in check, the public is so opposed to generous pay for executives, Cramer is concerned that Whitacre is going to have to receive negative pay for his work as the chief executive of General Motors.

While executive pay is a political issue, the business jet market seems to be gaining strength in spite of the public outcry over the use of corporate planes. Cramer would buy General Dynamics (GD) and Texetron (TXT) on this trend.


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