Bob Lutz: Auto executives are extremely underpaid

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