By Leftlane Staff
Thursday, Jan 12th, 2006 @ 9:54 am

GM executive Bob Lutz has rejected the suggestion by billionaire investor Kirk Kerkorian and his aide Jerry York that General Motors should reduce executive pay to help stem losses. York believes autoworkers shouldn’t be the only ones asked to make sacrifices, and executives should take cuts, too. But Lutz disagrees. “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,” Lutz said. “The capability of successfully trying to turn around an unsuccessful automobile company is a very rare and highly sought after skill set. And you do the shareholder no good whatsoever by reducing compensation to the point where everybody leaves.”

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