GM’s Lutz: ‘I gave at the office.’
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??