The issue is how to bring down costs. Executive compensation is a COST of doing business whether you understand that or not.
Executive compensation can be funneled right back into the company and hence lower its overall cost of doing business. What you are saying Andy is if you cut the workers to a dollar an hour but paid the CEO $20 trillion dollars a year that company could do just fine because that's not the cost to produce... that's just overhead.
The company must reduce costs. That's not the question. The question is should ALL parties in the company SHARE in this cost cutting. Of course they should. And you look at some of these executive compensation packages and you see one good place to cut real quick.
Andy what's been the top selling car in America for years now? The Toyota Camry.
Used to be the Ford Taurus. The Camry and the Taurus are in the same model class. The Camry cost more than the Taurus.
Americans buy the Camry because it's a much better vehicle... period.
And I can tell you from personal experience. I'd love to drive an American car. I've owned 4 Lincolns and 2 Cadillacs for example. But I drive a Lexus now because it is so superior not only in fit, finish and quietness but gas mileage. It's a full 5 person luxury car that gets 30mpg on the freeway.
American car manufactures just were not thinking ahead. GM came out with Hummer as the Ford Excursion was already being talked about as going extinct. While Toyota and Honda were more into very high quality, problem free, good gas mileage, small and midsize cars & crossover SUV's with good mpg. They still made a large SUV and truck but they were not their focus by any means.
I predict that both the Unions and the Executives will take cuts and significant product line revamping will have to be agreed to, to be given a bailout loan. I have certainty of mind that GM and Ford will come out of this and once again prosper. I have less hope for Chrysler. I think Chrysler may be a dieing breed. But that would open a possibility of more market share for GM & Ford if they had the right vehicles ready to capitalize on it..
