A follow up to yesterday’s article (see below):
Bob Lutz responds:
“Here’s where people get this wrong: They say, ‘Why are executives paid so much? You have to ask: Why are professional athletes paid so much?’â€‚
Professional athletes are also held to a pay-for-performance standard that we rarely see in the business world, though. If a running back in the NFL has a bad year or an injury, they get cut and lose their pay. In industry, if you fail, you either keep your job (thanks to the excuse-making) or get a golden parachute.
I really like Bob Lutz, but I think he’s off base here. The old “executives will leave if you cut their pay” argument is trotted out. Where are they going to go, Toyota??
Thanks for reading! I’d love to hear your thoughts. Please scroll down to post a comment. Click here to receive posts via email. Learn more about Mark Graban’s speaking, writing, and consulting.