Bob Lutz Expresses Woes Of GM Executives
Speaking at the annual National Automobiles Dealers Association (NADA), Bob Lutz declared his belief that the top 25 executives at General Motors are underpaid. Because GM is one of the companies that received billions in federal bailout money, Treasury officials are reviewing the company’s executive pay packages. It is probably not a coincidence then that Lutz chose this time to make his remarks regarding the matter of executive pay.
While Lutz does think that the 25 executives at GM deserve more compensation because of “the rigors of the job and demands and the accountability,” it is important to note that his exact quote says that the executives “are being paid way, way, way below market.” The distinction here is that Lutz is pointing out that they are being paid below market and not simply that they are underpaid. He even acknowledges that a company such as GM, which has recently emerged from chapter 11 bankrupcty, can not expect to have the same levels of executive compensation as similar companies that have not been through the grim process. (more…)
The Arbitration Proclamation: GM Moves Dealer Disputes To Top Priority
1,160 GM dealers who have filed for arbitration will certainly be delighted to hear that GM North America President Mark Reuss claims to have their franchises restored in two months’ time, well before the June deadline.
The obvious logic, according to Reuss, is that (dealers) “are the most important interface we have with customers.” The cold truth is quiet simple – dealers must give the best service in the business in order to both sell products and retain customers for The General.
Though the news is good, GM has yet to disclose an estimate of the overall cost of the arbitration process for all involved dealers. More as it happens on this very topic at GM Authority’s arbitration proclamation!
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