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