Reply #15: But they COST that [View All]

[dmallind]

Hence the competitive disadvantage.

And no matter what you feel about corporate pay excesses (chances are I would agree, but that doesn't matter) the difference in the NUMBER of executives versus labor means that the biggest cost driver is the latter by a mile. If the top 100 executives at GM all made as much as the CEO (which they don't) and all could be removed and replaced for free (which they can't) the sum total saved would be $570M a year.

The difference between GM's $70 an hour total cost and Toyota's $48 costs $3.2B in the US alone.

Any change to profitability cannot come from executives alone, or even mostly.