Struggling Ford Motor Company, 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 statement filed Thursday. The details were made public 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.
Ford's Great Public Relations
- Thread starter Dr Robert Harms
- Start date
samthejeepman
Permanent Vacation
usmcfred
GT Owner
Yes, it is hard to fathom on first blush, however Billy Ford was not getting it done and the Board decided to go after a true superstar CEO with a proven turnaround record ... in Mulally's case, at Boeing. I believe about 40% of the $28 mil is in stock options that are worth nothing unless the share price rises and that means improved earnings. A second large hunk was to compensate him for value he gave up by leaving Boeing to join Ford.
These "fix it" CEO's are a rare breed and they get enormous incentive compensation for what they do. Time will tell if Mulally, or anyone, can "fix" Ford's problems. If he can, $28 million is a bargain given the current billions being lost annually by the company. usmcfred
These "fix it" CEO's are a rare breed and they get enormous incentive compensation for what they do. Time will tell if Mulally, or anyone, can "fix" Ford's problems. If he can, $28 million is a bargain given the current billions being lost annually by the company. usmcfred
How about:
America's Great Ability To Take Everything out of Context
He didn't get paid $28 million for four months. He got paid $28 million to leave Boeing and the guaranteed millions he had on the table for successfully turning around that company after 9/11 crushed that industry. And as USMC pointed out, much of this "pay" may remain worthless. Everybody who wants to take over one of the world's largest companies in a hyper-competitive market where you are handed a massive disadvantage from the start by your labor costs, raise your hand. Oh, and leaving that whole successful company you've already turned around too.
I think people should think twice about commenting on other people's pay, unless they also want to submit their W-2s for public review. Demonizing people who are compensated for their massive successes isn't something that should happen in America.
America's Great Ability To Take Everything out of Context
He didn't get paid $28 million for four months. He got paid $28 million to leave Boeing and the guaranteed millions he had on the table for successfully turning around that company after 9/11 crushed that industry. And as USMC pointed out, much of this "pay" may remain worthless. Everybody who wants to take over one of the world's largest companies in a hyper-competitive market where you are handed a massive disadvantage from the start by your labor costs, raise your hand. Oh, and leaving that whole successful company you've already turned around too.
I think people should think twice about commenting on other people's pay, unless they also want to submit their W-2s for public review. Demonizing people who are compensated for their massive successes isn't something that should happen in America.
GTNJ
GT Owner
AJB
GT
Speaking with my old friends at Ford, they (the ones that seem to understand the dynamics of the Auto Industry) feel that he is doing an outstanding job. Let's hope he 'guts it out' for 5-6 years. Many of us are counting on him as a leader.
andy
AJB 2006 Blue White #0541
andy
AJB 2006 Blue White #0541
SYCO GT
GT Owner
dbtgt
One lucky SOB to own a GT
After dealing with the media for many years, I can tell you that when it comes to this type of story, ink always runs to the highest number. All CEOs have to live with that at this time of the year. The smart ones don't try to explain it, they just suck it up and eventually the story goes away, at least for another year.
Very well said. Ford has a market capitalization of $15B. A little over three years ago it has a market cap of about $28B. Hiring the best person possible to get Ford turned-around could have a major impact on earnings and its resulting market cap. Paying such a person tens of millions of dollars via stock options for doing so is a bargain.
Rob
Last edited:
Quickdraw
pit crew chief
- Dec 28, 2006
- 273
Update: He's up to $39 million for four months...
http://www.reuters.com/article/basicIndustries/idUKN0541418420070405?rpc=77
Excerpts: DETROIT, April 5 (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) on Thursday said it awarded new Chief Executive Alan Mulally compensation of $39.1 million for four months of work in 2006, a year when the second-largest U.S. automaker posted a $12.7 billion loss.
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According to Ford's proxy filing with the U.S. Securities and Exchange Commission, Mulally's compensation included a prorated $666,667 salary, an $18.5 million bonus, $19.6 million of stock and option awards, and $334,433 of other compensation.
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Mulally's bonus included $7.5 million awarded when he was hired, and $11 million to offset compensation he gave up when he left Boeing, where he led the commercial plane division.
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But agreed, if he can turn things around he is well worth it...
If he can't turn it around Ford will give him a Jac Nasser sized $22 million going away present...
http://www.reuters.com/article/basicIndustries/idUKN0541418420070405?rpc=77
Excerpts: DETROIT, April 5 (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) on Thursday said it awarded new Chief Executive Alan Mulally compensation of $39.1 million for four months of work in 2006, a year when the second-largest U.S. automaker posted a $12.7 billion loss.
~~~
According to Ford's proxy filing with the U.S. Securities and Exchange Commission, Mulally's compensation included a prorated $666,667 salary, an $18.5 million bonus, $19.6 million of stock and option awards, and $334,433 of other compensation.
~~~
Mulally's bonus included $7.5 million awarded when he was hired, and $11 million to offset compensation he gave up when he left Boeing, where he led the commercial plane division.
======================
But agreed, if he can turn things around he is well worth it...
If he can't turn it around Ford will give him a Jac Nasser sized $22 million going away present...
B O N Y
MODERATOR & FGT OWNER
FlorIdaho Chris
Yeah, I've got one.
A great CEO is worth big bucks. If he is successful in turning this ship around he is entitled to way more that $28M in my book.
Sinovac
GT Owner
"Advertisements contain the only truths to be relied on in a newspaper". -Thomas Jefferson
:wink
Of course, I think today's media is built on hype, exaggeration, speculation, distortion, mind-numbing logorrhea, cheerful degeneracy, and political leanings. I'd rather go outside and wash my car. :biggrin