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Lutz: Auto execs are underpaid

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Filed under: Government/Legal, GM, Earnings/Financials

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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]

Lutz: Auto execs are underpaid originally appeared on Autoblog on Fri, 12 Feb 2010 15:27:00 EST. Please see our terms for use of feeds.

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I think that's not something the general public wants to hear from a company their tax money saved, valid point or not.

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I'm willing to bet those executive's secretaries and their assistants, the janitorial staff and the lunch room people are even more underpaid.

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He's just blowing hot air without a more lucrative offer at another company. Of course it is possible that pretty soon a bunch of GM executives go elsewhere with more dollar signs, but I don't think that's very likely.

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This is a case of yes you are very correct but keep you friggin mouth shut.

The GM people are and will be underpaid for for now as he stated as it is the right thing to do just after chapter 11 and with the economy down. The fact he also is correct that the goverment needs to understand they will need to pay the talent that they need and want to keep in the future as the Markets drive the pay. It is part of the capital system.

The goverment is a good example of if you don't pay enough you get Half A$$ people. Anyone smart enough to run this country would not run for office as why would they take the pay cut. Lets face it most of the people in office could not run a whore house on a aircraft carrier with out losing a lot of money or stealing it. You know administration cost!

GM needs to put in place a time goals to reach and rewards to those who perform their jobs well to reach those goals.

I have always said if you want to make a lot of money running a car company get the education, work the long hours, miss you kids growing up, get divorced 3 times and carry a lot of stress from being hated by most. There is nothing to prevent anyone from doing what most have done. Few just got hired in at the top and just worked 40 hr weeks. Henry Ford II drank like a fish for a reason and they did not fire him because he owned the company.

There are lot of people at GM that did their jobs well but the GM system prevented them from getting results.

About the only people in this country that are under paid for the most are the guys sitting on a rocky ledge freezing with in Afganistan with a sniper rifle.

I have a FBI buddy over their now and what special pay they are giving him for 6 months is not worth it in my view. I just hope he makes it back in one piece.

Anyway Bob keep you trap shut unless you are ready to speak on the new Chevy SS sedan or C7 Vette. Talk about this after GM has made a strong profit consistant profit and the economy starts to improve.

Edited by hyperv6
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Bob is wrong. GM could have had a CEO making $75,000 a year lead them into bankruptcy. They didn't have to pay someone $14 million a year to nearly kill the company, only to be saved by the government. Without tax payer money, Bob and everyone else at GM is unemployed right now. He should be thankful to have a job. Personally, I am thankful to have a job, 1 in 10 people don't have one right now. It is rather annoying when someone making $500,000 a year or more is complaining about being underpaid. Bob needs to worry more about how his company is on life support and unable to turn a profit, and less about his salary. Wasn't he supposed to retire? Why is he still here, almost every car he was in charge of flopped, get rid of him already.

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