Ford CEO gets $28 million for four months of work

[Rascal]

http://money.cnn.com/2007/04/05/news/companies/ford_execpay/index.htm?postversion=2007040511

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 the company's proxy statement filed with the Securities and Exchange Commission Thursday.

The Ford (Charts) pay package for Mulally comes on top of the $7.4 million that aerospace company Boeing (Charts) had previously reported paying him for his eight months running that company's commercial aircraft unit before he made the move to Ford at the beginning of September.

Mulally's pay package at Ford included a $7.5 million hiring bonus, as well as $11 million that Ford described as an offset for forfeited performance and stock option awards at Boeing. In addition he received $55,469 for relocation costs and temporary housing.

His base salary was $666,667, which works out to annual pay of about $2 million. He also received restricted stock grants, which the company valued at $920,404, as well as 3 million stock options valued at $7.8 million. The stock options are not yet exercisable, and they have an exercise price of $8.28, or about 4 percent above current prices.

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 to $5 million "after reviewing the company's 2006 performance results and Mr. Mulally's leadership role in progressing his key priorities."

The filing was made the day after Mulally was the keynote speaker at the start of the New York auto show.

In addition, Executive 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.

The proxy also discloses that Mark Fields, the head of Ford's operations in the Americas, used company jets for personal travel at a cost to the company of $517,560 in 2006.

Ford executives' use of corporate jets for personal travel cost the company almost $1 million in 2006, as Ford, Mulally and Jim Padilla, who retired as president and chief operating officer on July 1, were required to use the jets for all of their business and personal travel "for security reasons."

An earlier filing by Ford had disclosed that Mulally can request that his wife, children and guests be able to use Ford corporate jets at company expense, even without him being on the flight. The proxy filing does not detail if that occurred during his time with the company in 2006.

Bill Ford's personal use of the jet cost the company $185,232, while Mulally's use of the Ford jets cost the company $172,974 and $82,265 for Padilla for the six months he was with the company during the year.

Fields use of the jet to fly back and forth to see his family in Florida on weekends was part of his employment contract with the company. But it became a subject of controversy when it was first reported by a Detroit radio station in late 2006. At that time the company had only disclosed Fields use of the jet had cost it $214,479 in the last three months of 2005. In January, Fields announced he would fly commercial jets instead, at company expense.

The details of the compensation packages and costs 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.

Ford, traditionally No. 2 in U.S. auto sales, could lose that long-held position to Toyota Motor (Charts) this year as the Japanese automaker opens plants here and gains market share as the traditional Big Three lose ground.

Ford announced in March that all full-time staff would receive some form of modest bonus for 2006, as it attempted to improve morale in the middle of a downsizing.

Most salaried workers and supervisors received between $300 to $800, depending on their location and rank in the company. Most union members received about $500. The company did not detail the overall cost of the bonus program, but the widespread bonuses cost the company at least $62 million, based on the 125,000 employees who were eligible for the payment. Top of page
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.

[usedupbraids]

wow and i only got like 3,600 for 4 months of work

[Crushaholic]

wow...

Now, I know what I want to do when I grow upLOL

[clarkster]

thats ****ing garbage. its not like hes curing cancer or something.

[Mediator12]

Every time I bitch about the NFL elite getting overpaid, I remember that CEO's are even worse ;D Upper management is still so overpaid it is not even funny.

[RkyMtnThunder]

I would love to get that kind of a bonus for failure on the job!

$28mil well deserved in light of $12bil in losses! Good job buddy!


(is Ford hiring?!?)

[SonOfLe-loLang]

The disparity of wealth in this country sickens me.

[Circle Orange]

Is he married?

[c_lazy_r]

Why would you care unless you are a shareholder?

[55CrushEm]

I would love to get that kind of a bonus for failure on the job!

$28mil well deserved in light of $12bil in losses! Good job buddy!


(is Ford hiring?!?)

Clearly with only 4 months on the job....he is not the one responsible for the failure of Ford Motor Co.

To retain the best CEO's big bucks have to be shelled out. Before sh*tting on the guy, let's see if he can turn that crap hole of a company around.

[rugbythug]

If he makes ford successful again he is underpaid.

[RkyMtnThunder]

Clearly with only 4 months on the job....he is not the one responsible for the failure of Ford Motor Co.

To retain the best CEO's big bucks have to be shelled out. Before sh*tting on the guy, let's see if he can turn that crap hole of a company around.

Yeah, realize he is not the root of the problem.

Still that is a mighty powerful bonus he gets while the company is cutting heads left and right because they are losing money.

How many jobs could have been saved if the new Ford CEO had said

'Ya know what, I think I can live with a $15 mil quarterly bonus. The company is struggling - I am here to help. I am putting my $$ where my mouth is.'


After all - he got $18mil for going to Ford only 4 months before. Another $28mil now?

How much money does the man really need? Is he obligated to feed the entire country of Uganda or something?


CEO salaries have gone up 400% over the last 20 years. Compare that to worker's salary gains. No comparison

sure. top dogs deserve top pay.

But its getting WAY out of hand. The greed involved cannot possibly be justified

[footstepsfrom#27]

What's he count against the cap? ;D

[55CrushEm]

I read somewhere that John Chambers, the CEO of Cisco Systems, is paid entirely in stock......his annual salary is ONE dollar.

I like that......if the company does well, he does well. If not, he doesn't.

[RkyMtnThunder]

I read somewhere that John Chambers, the CEO of Cisco Systems, is paid entirely in stock......his annual salary is ONE dollar.

I like that......if the company does well, he does well. If not, he doesn't.

Thats awesome, and nice to know there is at least one CEO like that.

Also kind of reminds me of how Kingston (computer memory company) had record profits one year and equally split the profits with all employees regardless of title. Everyone from top dog down to the janitor got something like $77k bonus that year. I thought that was pretty cool too.

[watermock]

Let me get this straight...Airbus is kicking Boeing's ass...Ford is losing double digit billions and he's pocketing 35 million to be incompetent? It's also amusing that Ford's great grandson managed to work 2/3rds of the year but didn't get 33% lopped off. How can you be Ford's great grandson and manage to get fired?...I guess if Disney can muscle out a Disney in brutal fashon everything is possible.

Only in America can incompetence be so handsomely rewarded. Ford better be carefull and the robots will go terminator for better working conditions.

You people are so short sighted...what's a measly 29 million when you managed to put 12 billion of red ink on the books? Get real.

All mock got was a "don't let the door hit you in the ass".

[watermock]

What's he count against the cap? ;D

The count? Expect Ford to put more CRAP on the street.

[rugbythug]

Thats awesome, and nice to know there is at least one CEO like that.

Also kind of reminds me of how Kingston (computer memory company) had record profits one year and equally split the profits with all employees regardless of title. Everyone from top dog down to the janitor got something like $77k bonus that year. I thought that was pretty cool too.

I would Hate that. I want paid what I am worth not just an even split. Champ Bailey and Karl Pamah should not have the same bonus.

[RkyMtnThunder]

I would Hate that. I want paid what I am worth not just an even split. Champ Bailey and Karl Pamah should not have the same bonus.

Something tells me you arent Champ Bailey.

Not implying you are a janitor or anything - but how could you hate getting a $77k profit sharing bonus?!?

[footstepsfrom#27]

Smaller companies or those in early stage expansion mode without cash reserves or positve cash flow frequently offer stock options instead of salary to attract top level CEO talents, but Ford doesn't have to do that. As others pointed out, the prior track record of losses didn't occur on this dudes watch. We'll know in 3 years if he's "worth" what he's paid or not...in relative terms anyway.

[Garcia Bronco]

The President has asked congress to do something about this and they refuse to do it.

[RkyMtnThunder]

Smaller companies or those in early stage expansion mode without cash reserves or positve cash flow frequently offer stock options instead of salary to attract top level CEO talents.

Cisco (the company CEO used as a positive example in this thread) is not small, nor is it in its formative stages.

[rugbythug]

Something tells me you arent Champ Bailey.

Not implying you are a janitor or anything - but how could you hate getting a $77k profit sharing bonus?!?

I know what I bring to the table. I have specific skills they may not be covering wide recievers but they are much more valuable than cleaning floors. I need to be paid in accordance with my value.

[RkyMtnThunder]

I know what I bring to the table. I have specific skills they may not be covering wide recievers but they are much more valuable than cleaning floors. I need to be paid in accordance with my value.

(rolls eyes)

:rofl:


whatever you say buddy

:thumbsup:

[watermock]

Clearly with only 4 months on the job....he is not the one responsible for the failure of Ford Motor Co.

To retain the best CEO's big bucks have to be shelled out. Before sh*tting on the guy, let's see if he can turn that crap hole of a company around.

How is a CEO that can't hold a job for at least one year a "Best CEO?!

Your taliking about an idiot that has gone thru two jobs in one year. Even King Karl Peterson knows it takes 30 plus years. :giggle:

Tell me one thing this clown has done to move Boeing or Ford forward in his short tenure other than bank millions and lose billions?

[c_lazy_r]

You guys sound like the Bidwell's.

[NYBronco]

I'll just continue to buy my Toyota's.

[Garcia Bronco]

I'll just continue to buy my Toyota's.

I got a my first Toyota in November. It's a little under power and the features lack a bit. I still like it...but these are the things that I have noticed coming from a Nissan

[55CrushEm]

Tell me one thing this clown has done to move Boeing or Ford forward in his short tenure other than bank millions and lose billions?

If 4 months....probably not a whole lot. But then again (and I'm just spit-balling here), it's probably a little hard to turn around a multi-billion dollar company in that short a time.

Hell, should we fire Champ Bailey, because he didn't bring us a Superbowl in his first year? Or should we have fired Mike Shanahan after the 1995 season, for that matter?

Things take time......

[NYBronco]

I got a my first Toyota in November. It's a little under power and the features lack a bit. I still like it...but these are the things that I have noticed coming from a Nissan

Mine is under powered also and a little more pricey compared to other cars of it's size. But I expected that with a Corolla. I bought it for the dependability, quality and more importantly the gas mileage.

[ZONA]

Both Ford and Chevy/GM are in bed with the oil companies so it doesn't matter what their books look like, they get the real money "other ways". Why do you think they have a law suit against CA regarding lower emissions? Ford and GM can make better more efficient cars, the technology is there, everybody else is using it. It's the oil companies they're in bed with that want that law suit.

I was looking at the Tacoma also but went with the Nissan Frontier because it kicks out 265 ponies from an aluminum block V6. Who needs a V8 when you got 265HP from a V6? Unless you plan to tow big equipment or a trailer with cattle, my Frontier can tow my buggy and trailer just fine.

[Florida_Bronco]

The count? Expect Ford to put more CRAP on the street.

What "crap" does Ford put out now? ??? Their problem isn't their vehicles.

[Circle Orange]

Why would you care unless you are a shareholder?

I'd want to get close...find out all his secrets for being stupid, useless and incompetent...and make boo coo bucks! 8')

[footstepsfrom#27]

How is a CEO that can't hold a job for at least one year a "Best CEO?!

Your taliking about an idiot that has gone thru two jobs in one year. Even King Karl Peterson knows it takes 30 plus years. :giggle:

Tell me one thing this clown has done to move Boeing or Ford forward in his short tenure other than bank millions and lose billions?

Actually he spent 36 years with the same company prior to his appointment at Ford. Basic background from wikipedia:

Alan Roger Mulally (born August 4, 1945 in Oakland, California) is an American engineer and businessman. He is currently the President and Chief Executive Officer of Ford Motor Company.

Mulally was previously the executive vice president of Boeing and the CEO of Boeing Commercial Airplanes (BCA). Mulally began his career with Boeing as an engineer in 1969.[2] Mulally was largely credited with BCA's resurgence against Airbus in the mid-2000s.

Personal

Mulally graduated from the University of Kansas in 1969 with Bachelor of Science and Master of Science degrees in aeronautical and astronautical engineering. He also received a Master's degree in Management (S.M.) as a Sloan Fellow from the MIT Sloan School of Management in 1982. [1] [2] He has three sons, two daughters and is married to the former Jane "Nicki" Connell.[3]


Boeing career

Mulally was hired by Boeing immediately out of college in 1969 as an engineer and advanced through the company in a series of engineering and program management positions, making contributions to the 727, 737, 747, 757, and 767. He worked on the 777 program as the vice-president and general manager and was the Vice President of Engineering for the commercial airplane group. In 1994, Mulally was made the senior vice president of Airplane Development and was in charge of all airplane development activities, flight test operations, certification, and government technical liaison. In 1997, Boeing made Mulally the president of the Information, Space & Defense Systems and senior vice president. This lasted until 1998 when he was made president of Boeing Commercial Airplanes, Chief Executive Officer duties were added in 2001.[2]

Following the forced resignations of Phil Condit and Harry Stonecipher, Mulally was considered one of the leading internal candidates for the CEO position.[4] When Mulally was passed over in both instances, questions were raised about whether he would remain with the company.[5]

For Mulally's performance at Boeing, Aviation Week & Space Technology named him as their person of the year for 2006.[6]


Ford Career

Mulally was named the President and CEO of Ford Motor Company on September 5, 2006, succeeding William Clay Ford, Jr., who remains as Executive Chairman of the company's Board of Directors.[7] He is taking over "The Way Forward" restructuring plan at Ford to turn-around its massive losses and declining market share.[8]

Couple of things that stand out...he's a career engineer who made contribuitons on all of Boeing's commercial air fleet models instead of just another ivy leaguer with connections, and he's a Sloan Fellow at MIT...an impressive achievement. Since he's already been credited with turning around Boeing's competitive disadvantage with Airbus, he sounds like a pretty good choice for a company drowning in debt and needing a fresh set of ideas to jump start a change.

Business Week noted that Wall Street was skeptical but Ford insiders were happy with the appointment: http://www.businessweek.com/autos/content/sep2006/bw20060907_376309.htm

[watermock]

Toyotas underpowered? Try selling Corollas that put out a whopping 82 horsepower for mountain driving. Even their pickups only put out 116.

Looking at it a little deeper, it might be a good move. The problem with Ford/Mercury/Lincoln is that none of them are all that impressive whatsoever.

Give me Jay's Lexus SUV. As far as pickups go, give me a deisel Dodge with the advanced injection that can tow a locomotive.

[maven]

If Mulally keeps the company from going bankruptycy and slowly turns the company around he's worth EVERY penny they pay him.

[Florida_Bronco]

Give me Jay's Lexus SUV.

I would have never guessed.

[maven]

Actually he spent 36 years with the same company prior to his appointment at Ford. Basic background from wikipedia:



Couple of things that stand out...he's a career engineer who made contribuitons on all of Boing's commercial air fleet models instead of just another ivy leaguer with connections, and he's a Sloan Fellow at MIT...an impressive achievement. Since he's already been credited with turning around Boeing's competitive disadvantage with Airbus, he sounds like a pretty good choice for a company drowning in debt and needing a fresh set of ideas to jump start a change.

Business Week noted that Wall Street was skeptical but Ford insiders were happy with the appointment: http://www.businessweek.com/autos/content/sep2006/bw20060907_376309.htm

Mulally wasn't given the top gig at Boeing.... Ford came in and perge him.

[maven]

I would have never guessed.

If Mock or Bob post...

You're like a leech off of Will Wheaton's nuts. How does it feel?

[maven]

I would have never guessed.

I'll visit chiefs planet... And low and behold. There's FL bronco on the nuts of Bob.

I visit orangemane... And low and behold. There's FL bronco on the nuts of Watermock.

What a surprise.


Hilarious! Hilarious! Hilarious!

[watermock]

http://www.orangemane.com/BB/image.php?u=3144&dateline=1172353759

Nominated for stupidest avatar of the mane.

[maven]

http://www.orangemane.com/BB/image.php?u=3144&dateline=1172353759

Nominated for stupidest avatar of the mane.

Such a gorgeous female only to throw it away.

[Florida_Bronco]

I'll visit chiefs planet... And low and behold. There's FL bronco on the nuts of Bob.

I visit orangemane... And low and behold. There's FL bronco on the nuts of Watermock.

What a surprise.


Hilarious! Hilarious! Hilarious!

Only because it infuriates him so much and on special occasions when he posts something stupid.

[Florida_Bronco]

If Mock or Bob post...

You're like a leech off of Will Wheaton's nuts. How does it feel?

Will Wheaton? You mean that kid from the movie Toy Soldiers?

[ZONA]

As far as pickups go, give me a deisel Dodge with the advanced injection that can tow a locomotive.

Look at the stats, all the full size trucks have about the same towing, hauling, etc. Nothing new there. The Toyota and Nissan however will last you forever where the American stuff just breaks down.

[Florida_Bronco]

The Toyota and Nissan however will last you forever where the American stuff just breaks down.

You gotta be kidding me. You don't actually believe that crap, do you?

[watermock]

If your hauling a sofa now and then. Nothing wrong with the Tundra or Titan. The Dodge has a tractor motor. We pull stuff that will burn up an automatic. Allready has. You want towing power, the Cummins stick is the real deal. It's absurd because you start out in second if your not towing.

Expensive things tho. Never heard a quieter deisel either...some special ignition/injection. It's like driving a mini semi.

[Circle Orange]

Actually he spent 36 years with the same company prior to his appointment at Ford. Basic background from wikipedia:



Couple of things that stand out...he's a career engineer who made contribuitons on all of Boeing's commercial air fleet models instead of just another ivy leaguer with connections, and he's a Sloan Fellow at MIT...an impressive achievement. Since he's already been credited with turning around Boeing's competitive disadvantage with Airbus, he sounds like a pretty good choice for a company drowning in debt and needing a fresh set of ideas to jump start a change.

Business Week noted that Wall Street was skeptical but Ford insiders were happy with the appointment: http://www.businessweek.com/autos/content/sep2006/bw20060907_376309.htm

Oh, he's an old dude...:pimp:

[Circle Orange]

Both Ford and Chevy/GM are in bed with the oil companies so it doesn't matter what their books look like, they get the real money "other ways". Why do you think they have a law suit against CA regarding lower emissions? Ford and GM can make better more efficient cars, the technology is there, everybody else is using it. It's the oil companies they're in bed with that want that law suit.

I was looking at the Tacoma also but went with the Nissan Frontier because it kicks out 265 ponies from an aluminum block V6. Who needs a V8 when you got 265HP from a V6? Unless you plan to tow big equipment or a trailer with cattle, my Frontier can tow my buggy and trailer just fine.

Gear ratio is different, that's how they do it with the V6s...main difference is the accelerartion to top speeds (if you're into that). They also handle differently because of it. Also, the V6s have to "rev" higher to get the same HP.

But I'm cool...my V8 T Bird rolls along quite well. :yayaya: