Bill Ford's compensation falls 40 percent to $13.3M
Ford Motor released
details of its executive compensation Friday, as part of its 2006 proxy statement to the Securities and Exchange
Commission. At the top of the list is chairman and CEO Bill Ford, whose 2005 total compensation took a big hit, falling
40 percent to $13,298,279. In all fairness, this compensation takes form of stock and stock options virtually
in its entirety. Ford has pledged to forgo any cash compensation until the company's automotive operations return to
profitability.High-profile wunderkind Mark Fields, President of the Americas, pulled in about $3.2 million, including a $1 million cash "retention payment" to make sure he sticks around.
[Sources: Washington Post, Ford Motor Company]
Reader Comments (Page 1 of 1)
RossL 11:40AM (4/08/2006)
Bill Ford is putting his money where his mouth is - he gets my vote. And while we're on the subject of pay, does anyone know offhand how much Rick Wagoner is pulling in, by way of cash compensation?
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Corey W. 11:52AM (4/08/2006)
I wonder what the average day of an executive is... What type of everyday task is worth 10+ million dollars a year. I'm not hate'en on Bill, just wondering...
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Brother Justin 12:22PM (4/08/2006)
It's amazing, He's pulling that much money and their firing people let and right, closing plants. I'm not one for Unions but when you squeeze the shit out of the workers actually making the cars and then pull in that much money because your Daddys Daddys Daddys started the company somethings wrong!
When the company not making money and you still get a bonus, grated it's from stocks but how can you honestly take it.
BORN with a Silver Spoon, DIE with a Silver Spoon.
He's the top dog at Ford. I wonder just how much his lap dogs and yes men are getting?
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AL 12:45PM (4/08/2006)
The Ford family still controls 40% of the Ford voting shares, so any compensation Bill Ford gets is just 'pocket change' for him. But, I wonder if the wonderboy Mark Fields is worth almost $5 million a year. After all, he hasn't done a #$%# thing yet (except look young) and his 'red, white and bold' campaign has been laughed at by auto insiders. Long time Ford employee Jim Padilla was kicked out for this guy.
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richard elsbree 1:41PM (4/08/2006)
Bill Ford may be the only man in American who, while drawing no salary is still
grossly overpaid. How long before he finally realizes that he has no idea what he is doing? I'm afraid its too late for the Blue Oval anyway.
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Jason 2:14PM (4/08/2006)
Good! Restructure his contract again and use this base as the next step down starting place. Set new aggressive R&D goals, design goals, engineering standards, parts standards, and manufacturing quality objectives and then review him again in a year. And repeat for every top executive... This shouldn't be optional, a voluntary gesture by a rich boy who has job security in his family. Small clubs of men are siphoning a quarter billion a year at least out of every car company. Are they worth it?
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Chris 4:32PM (4/08/2006)
What does this guy have on the line to justify compensation like this? If the company folds he just loses a job and goes home to his mansion and millions in the bank.
I would understand compensation like this if his risk/stake was a lot higher. If the company folded and he lost everything, it would be justified.
What sad is that this is typical of large companies.
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JIm 9:24PM (4/08/2006)
Between the lines, and not so between the lines, there is more than a little jealousy here. "He shouldn't be getting that much." How much should he be getting? Well, sorry, but it's none of our business - either directly or via options. Don't like it, sell you stock and buy a car from a company that only pays its CEO a $100K. Don't like working for the same company...quit and go to work elsewhere. At least Bill Ford isn't taking a salary AND options. I too have some trouble with a company that is losing it shirt and still paying a guy a zillion bucks, but the fact remains, if every employee that made over $1M in the company gave up there salary, it wouldn't make a lick on Ford's (or GMs) bottom line.
They stock options thing really got off the ground in 1992 when the Congress changed the law so companies could not deduct, as a business expense, salaries above $1M. High dollar guys were thereafter paid in stock options, which are deductible by the company.
I'm reminded of the Ford exec that gave the deer in the headlights look when he found out that Eddie Erwin, at $7M plus per year, was the second highest paid person in the Ford company.
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Puff Chippy 11:29PM (4/08/2006)
I don't see jealousy, I see outrage at something that is a genuine problem. If it continues it may undermine the entire capitalist system we've prospered under due to a backlash of anti-market sentiment. The ratio of average CEO pay to the average pay of a production (i.e., non-management) worker was 431-to-1 in 2004 as compared to 42-to-1 as recently as 1982. In fact, according to recent studies, had the minimum wage risen as fast as CEO compensation since 1990 it would now be $23.03 an hour. Justify this thievery any way you like but ignore it at your own peril.
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Melissa 3:52PM (4/20/2006)
Let's see------the CEO of Toyota makes a mere $400K/yr. and their stock is over $100/share now. Ford CEO makes millions (who cares how many!) and their stock is at $7/share. Yep, makes perfect sense to me. It is my business as a shareholder how much he makes!!! And, I can assure you that I'm not jealous, b/c when it comes time to 'pay the piper,' my bill won't be nearly as high as his. As for every employee in the company making over $1 million giving up his salary, it's not their salary that's the issue; it's their incompetence.
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