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New Ford CEO Pockets $28 Million for 4 Months of Work!

According to Reuters and Autoblog, Ford's new CEO Alan Mulally earned $28.18 million dollars last year while the company posted a $12.7 billion loss last year.

The shocking part of it all is that he was paid that astronomical amount for only being on the job for 4 months. Ford's previous boss, Bill Ford made a pledge to not be compensated until the company was back in the black, while he was in the position. Therefore for the first 8 months of 2006, he was not paid a salary, bonuses or stock earnings. Ford isn't projected to be back in the black until 2009.

The actual breakdown of his salary included a $7.5 million signing bonus, and $11 million to compensate for getting him out of his Boeing contract early. Also written into his five year contract is a provision that if he is released for any reason he will get an exit package worth $27.54 million. That is a lot of money considering the Ford President of the Americas, Mark Fields only made $5.57 million last year.

Let's hope he actually turns the company around. They have a lot of products coming out. It just seems like a lot of money to pay when they are laying off workers and closing plants. Also what if he totally screws up...they have to pay to get rid of him? Who thought of that? I think we would all want that line to be added to our employment contracts.

Full Story: Autoblog

Comments (5)

Eddie Ruff:

The Lincoln LS line is the worst line of auto ever built in US. I have only brought American cars all my life in America. I will be 57 years old this year and will be looking at BMWs and other for my next purchase.

Eddie Ruff

Philip Sullivan:

That is disgusting! If a worker in Ford made $100,000 per year, wnich is not likely even if he or she was an engineer, Mullaly's "pay" was over 84 times that per year. The reason he was hired was , if you think about it, to run the company and the workers into the ground, without the wealthy members of the board of directers being blamed when theysold their stock shares and invested the money in asian auto companies. As old 666, Ronald Reagan said,'Greed is good!" Well, for some few people at the top anyway. For the rest of us it's likely to result in jail time.


'

A.J. Subram:

To Philip Sullivan:

Your statement is emotionally charged but logically incorrect. Alan Mullally is an exceptionally qualified candidate. He's an engineer and businessman with excellent credentials. If you look into his past history he was in the running to become CEO of Boeing Aerospace. During his tenure at Boeing Commercial Aviation he led that division from poor sales compared to its European rival. Now Boeing is benefiting greatly from his work. Out of the big 3 Ford definitely has the best CEO and although it will take years for Ford to rebuild its tarnished reputation, you'll see Ford offer higher quality cars than GM or Chrysler soon.

wayne:

A Modern Parable.

A Japanese company (Toyota) and an American company (Ford Motors) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.

Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses. The pension program was trimmed to "equal the competition" and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid-off one rower, halted development of a new canoe, sold all the pa ddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses.


The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year's racing team was out-sourced to India.

Sadly, the End.

Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results:


TOYOTA makes 4 billion in profits while Ford racked up 12 billion in losses.

Ford folks are still scratching their heads, and collecting bonuses.

IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY


Kevin:

I've been a Ford/Linc./Merc. Tech for about 17yrs. or so... Ford continues to cut back on the labor times they pay us
(while making the vehicles ever more difficult to diagnose/repair), they build cars noone wants (except the Mustang), their Diesel Trucks have gone to crap, the overall quality of the whole brand has dropped, & this tool gets that kind of payolla???? Makes me want to vomit on his mahogany desk!! No wonder the Imports are taking over!

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