As G.M.’s executive salaries are under review as part of the whereby the government invested billions in the ailing company in June, Vice Chairman Bob Lutz – who also serves as the company’s VP of marketing – says that G.M.’s execs are extremely under-compensated, given the nature of their jobs and the market in which they compete.
“All I know is, right now, we are given our responsibility. And given the rigors of the job and demands and the accountability, I would say we are being paid way, way, way below market,” Lutz said.
Pay Czar Ken Feinberg had ordered a 25% pay cut for then-CEO Fritz Henderson, and mandated that save for the CEO and one other executive, no one was to earn over $500,000 per year. Lutz says that while this may not be a big problem right now, companies that under-compensate, are bound to run into recruitment and retention problems.
– By: Stephen Calogera
Source: Detroit News