Ford CEO: $28M for 4 months work

[underpants]

Source: CNN Money

Former Boeing exec got $18.5 million bonus, almost $9 million in stock and options and base salary at annual $2 million rate, according to proxy.




NEW YORK (CNNMoney.com) -- Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job, according to a proxy statement with the SEC Thursday.

In addition, Chairman Bill Ford Jr. took only a 21 percent pay cut even though he gave up the CEO post for the last third of the year. His total compensation came in at $10.5 million, down from $13.3 million in 2005. The great-grandson of the company's founder, Ford took no base salary or bonus in either year.

Mulally, the former head of commercial aircraft for Boeing (Charts), joined Ford (Charts) at the beginning of September. His pay package at Ford included an $18.5 million bonus, as well as salary of $666,667, which works out to annual pay of about $2 million. He also received stock awards of $920,404, and stock options valued at $7.8 million.

It comes as Ford moves ahead with plans to close plants and cut more than 30,000 hourly positions from the company in an effort to stem losses. It also comes as Ford, General Motors (Charts) and DaimlerChrysler's (Charts) Chrysler Group prepare to start negotiations with the United Auto Workers union to see concessions and labor cost savings when their current contracts end in September.

Read more: http://money.cnn.com/2007/04/05/news/companies/ford_execpay/index.htm?postversion=2007040510

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It's all about risk and reward folks

Risk....and.... reward

:sarcasm:

[matcom]

1. when are these fuckers going to be held accountable?

what the hell is it going to take? unbelievable.

this can't be what Capitalism is all about. just can't be.

[underpants]

9. If only

if only they had some product ...some great product that was a sure fire cash maker....something people would buy in fleet sizes...dependable..economics...roomy enough...fast enough...safe enough.. if only....then maybe they could use it as a basis for other products but always staying true to their bread and butter tweaking it to create return customers and interest new customers via performance reviews and word of mouth...if only.....

[quiet.american]

2. Yet a $2.00 minimum wage raise over *2* years is considered too drastic by the GOP. n/t

[geomon666]

11. And by some on here. n/t

[erpowers]

3. Pretty Silly

It is pretty silly, in my opinion, to pay someone that much money in four months, especially when the company is still failing. I always thought people only got bonuses when they did things right and when the companies actually made money. I still think CEOs should only get bonuses when the company is making money. Ford could save a great deal of money if they just cut the pay of their high level workers. Just by cutting the pay of Mulally and Ford Jr. by 50% the company can save $19 million and that is just two people. I can imagine that there is a number of people making more than a million at Ford. So, it seems to me that the real problem at Ford is that they are paying too much for the high level workers.

[underpants]

6. My snarky comment about risk and reward

See it used to be that we were told that the reason for these HUGE salaries was that CEO's walked a tighrope and if they failed they lost employment for ever but if they "succeeded" they deserved the pay.

Well that doesn't exist anymore. Even the failed CEO's land Board of Directors seats and consulting jobs etc. It isn't just an "old boy network" it is mostly a blueblood network. These guys now say they deserve the pay because of their wealth of knowledge....and so on.

What they also let slip out every once in a while is that they don't deserve this pay they are owed it because they are clearly better, of a better class, of better stock THAT is why their whole family is so successful--but they don't like many people to hear that Social Darwinism...but it does exist.

[bemildred]

4. Hey you have to pay for the best to run the company into the ground. nt

[Virginia Dare]

5. And "they" say the unions are greedy?

unbelievable..:banghead:

[underpants]

7. It was the same power tie clad sausage grinder that produced this CEO

that produced all the CEO's who signed all those agreements with the unions that they are complaining about. No one had a gun to anyone's head. Hell at the time Ford HAD the money to pick up the whole operation and move it out of union country but they didn't they paid for protection from DC to make the move and all their buddy CEO's did the same thing ---> SEE everyone is doing it!!!

[Virginia Dare]

8. Henry Ford saw the value of creating a blue collar middle class..

these assholes just see dollar signs. They care about nothing but their Wall Street buds and their own pocket books.

[kineneb]

10. meanwhile, as a caregiver, I earn $0

Yes, I am earning lots of Good Karma Points as Hubby's caregiver, but they doesn't pay the bills.

I think this dweeb deserves about $7.00/hr. He isn't helping the company.

[1monster]

12. I'll do his job for half the money! ;:oD

And I'd probably do a better job, too!

[JPZenger]

13. Sometimes New CEO Paid for Stock options that gave up

I don't know the exact facts in this case. However, in other cases, when a company hired a new CEO from another company, they compensated the person for the value of the stock options in their old company that they gave up to take the new job.

[Blue_Tires]

14. boy, did i ever choose the wrong profession!

I used to think pro athletes were the ones cleaning up, but no athlete can touch 28 mil in 4 mos...(from a company that is bleeding money from every pore, no less)

[NeoConsSuck]

15. Ford CEO: $28M for 4 months work

Source: CNN.Com

Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job, according to the company's proxy statement filed with the Securities and Exchange Commission Thursday.

The details of the compensation packages and costs come as Ford moves ahead with plans to close plants and cut more than 30,000 hourly positions from the company in an effort to stem losses.

The company had disclosed in a footnote buried on page 228 of an earlier filing with SEC that Mulally saw the value of his stock bonuses increase to $6 million from the originally agreed upon $5 million "after reviewing the company's 2006 performance results and Mr. Mulally's leadership role in progressing his key priorities."

-------------------------

Bush's "No CEO Left Behind" is working quite well.

Read more: http://money.cnn.com/2007/04/05/news/companies/ford_execpay/index.htm?cnn=yes

[The_Casual_Observer]

16. He's really worth that much, just ask him.

[Parisle]

17. Yeah,.... I'm still gagging on this one,......

--- It is telling that they did this precisely at a time when inordinate CEO compensation was being scrutinized by congress, the media and certainly the public. Meaning? They really don't give a shit. 30,000 people losing their livlihoods, and the guy that helped manage them into a $12.7 billion loss is going to check out with $1.75 million per week for his dubious efforts. Defies reason. Incredulity just isn't the word.

[NRaleighLiberal]

18. Just another typical sign of life in Bushworld. No story here. Just move on.

What the hell is wrong these days? Where to start? True bizarro world - completely upside down, illogical. What's next?

[depakid]

19. Hard to believe that investors haven't gotten together

and put pressure on companies and Congress to stop this blatant abuse. Bunch of robber barons, if you ask me.