GM Car Czar Bob Lutz Gets 17.6% Re-Raise. And Then Some.

gm car czar bob lutz gets 17 6 re raise and then some

Last week, we reported GM CEO Rick Wagoner's bonanza: a $2.2m salary re-raise, 165,563 shares, 500k stock options and 75k restricted stock units. We now learn that Wagoner's heir apparent, newly-appointed COO Fritz Henderson received a 36.6 percent raise. That takes the former Beancounter-in-Chief to $1.8m per year (plus bonuses, unspecified stock options, pensions, cars for life, etc.). The Wall Street Journal reports that GM Car Czar Bob " California rules" Lutz also got his chance to shake the GM money tree. Lutz gets a 17.6 percent re-raise, taking him to $1.55m plus bonuses and stock options worth over $1m. GM would't say what other top executives will be financially blessed, but spokesmouth Tony Cervone claimed GM suits are paid "based on their performance." If that rankles, just think what these guys would have made if they hadn't sold the family silver, lost billions of dollars and sacrificed once valuable U.S. market share.

Comments
Join the conversation
4 of 13 comments
  • Blunozer Blunozer on Mar 13, 2008

    Gee... I wonder why the union guys are so pissed off and so unwilling to make concessions? The guy on the line being asked to take pay cuts and layoffs finds it a little more hard to swallow following a upper management pay increase. Lead by example fellas.

  • NeonCat93 NeonCat93 on Mar 13, 2008

    Well, if the cars for life are GM products, it could be punishment enough. That would be a good way to reduce the backlog - pay them in unsold Tahoes, etc. I know that I don't have a MBA or anything like that, but if someone wants to pay me $1 million plus a year, I promise I will do at least as well as the GM execs.

  • Sherman Lin Sherman Lin on Mar 13, 2008

    I don't mind the exorbitant pay for top level executives, Its just the fact that they don't get fired for lack of performance that kills me. By all means reward top level talent handsomely but demand performance for that pay.

  • Redbarchetta Redbarchetta on Mar 13, 2008

    I'm simply amazed, big raises for poor performance and a 17% raise at that, I guess that's what true inflation is at right now.

Next