To clarify, Bob Lutz is specifically talking about General Motors' top 25 execs. They are the ones who have seen their salaries decline by 31%, and their total remuneration packages go down by more than 20%. Said Lutz, "given the rigors of the job and demands and the accountability, I would say we are being paid way, way, way below market."
Some would say that the company Lutz works for is lucky to be around at all. Still, he's got a bit of a point – the "market" decides who gets paid what, and then decides who's going to go where. If GM's salaries can't keep up with their rivals', then GM knows it's going to have to make do with what it can get. Or, heaven forbid, get really creative with the massive talent and resources it does have...
To be fair, Lutz knows the score and is only looking for the end of the tunnel, acknowledging, "You can't go through Chapter 11 and come out the other side and expect to have all of the same perks and comps as you did before. We just hope it doesn't stay this way too long." We say that it's only fitting that how long the situation lasts – until GM repays its loans – will be decided entirely by Mr. Lutz and those 25 pay-restricted executives.
[Source: The Detroit News | Source Image: Bill Pugliano/Getty]