GM’s Lutz: ‘I gave at the office.’


GM's Lutz: Don't cut exec pay-He shoots down Kerkorian's idea to reduce salaries, says ‘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?' 

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??

Please check out my main blog page at

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author's copyright.

What do you think? Please scroll down (or click) to post a comment. Or please share the post with your thoughts on LinkedIn – and follow me or connect with me there.

Did you like this post? Make sure you don't miss a post or podcast — Subscribe to get notified about posts via email daily or weekly.

Check out my latest book, The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation:

Get New Posts Sent To You

Select list(s):
Previous articleGM told: Cut every salary
Next articleExpert (Womack) suggests lean production
Mark Graban
Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.


  1. Here is a thought: Perhaps the current executives leaving is precisely what GM needs.

    If a professional sports team loses consistently, you can try to blame it on the players but eventually it is the coach who gets fired to get things turned around.


  2. Mark,

    I read the same article and nearly choked when I read Lutz’ statement, “The capability of successfully trying to turn around an unsuccessful automobile company is a very rare and highly sought after skill set.” While that may be true, Lutz’ career thus far has been leadership of companies that are in dire straits.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.