Alan Mulally will make at least $10 million/year at Ford
New Ford Motor Company CEO Alan Mulally will make some mad cash according to the Detroit News -- at least $10 million clams in compensation, in fact. The high sticker comes as no surprise given the fact that Bill Ford has had such a hard time finding somebody to take over his job, including the likes of Carlos Ghosn and Dieter Zetsche. It also comes as no surprise since Mulally was Boeing's second-highest paid executive at a mere $9.9 million compensation package in 2005, and Ford had no choice but to offer him a better deal.Among his Boeing perks was a 104-percent pay increase for 2005 over 2004, $83,000 in personal use of the company jet, company cars and club memberships for business purposes. His base pay in 2005 was $825,000.
[Source: Detroit News]
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Reader Comments (Page 1 of 2)
Toby 8:11PM (9/07/2006)
Holy Crap batman. That is crazy. Nine million of that pay should go back into engineering!
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whofan 8:13PM (9/07/2006)
Wow give me a chance to run your company Bill!
Just for one year, if I suck at it I`ll leave. If I do well for you I`ll stay on.
Either way, one year is all I`ll ever need.
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Steve 8:15PM (9/07/2006)
Its worth every penny. After all the guy is landing from his boeing straight into an F-150.
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whofan 8:18PM (9/07/2006)
Why not hire Donald Trump?
I really hope Alan`s $$$$heart$$$$ is in the job at hand.
The concept of Donald Trump running an auto company is interesting.
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Mustang 7:28AM (9/08/2006)
I don't even need a full year, just give me one months worth of that salary and i'll be set. Thats insane.
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David G 9:17PM (9/07/2006)
I sure wouldn't want to be paid in $10 million clams. What bank would accept them?
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Nick 10:15PM (9/07/2006)
david g, that comment was funny enough to make me want to post
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Car chops and Discussion 10:07PM (9/07/2006)
wow, what a paycheck :p
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DJ 10:04PM (9/07/2006)
I have guess that 80 to 90 percent of this package is based upon meeting specific performance goals, if meager ones at that. There's no way the board (even with the Ford family's 40% voting stake) would agree to this level of compensation to run a company that is losing $1 to $2 billion per quarter.
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Jeff 10:40PM (9/07/2006)
CEOs and other top executives are paid by the shareholders, not by the company. Of course, the value of the shares is determined by company performance.
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Infinihertz 12:56AM (9/08/2006)
DJ, Ford lost ~$240 million last quarter, not $1-2 billion as you claim. It was even posted here on Autoblog.
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Finished.Law.School 1:38AM (9/08/2006)
And after paying him and getting no positive changes what will Ford do?
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Paveway 7:55AM (9/08/2006)
I'll do the job for $750,000.00 per year. I can screw up a company just as well as any other highly overpaid corporate executive, and it wont cost FoMoCo as much!!!
Hell, I might just even save the company. Sometimes having no clue can be a good thing when trying something new.
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Howard Kerr 8:02AM (9/08/2006)
America....where corporations pay top dollar, and then some, when it comes to the salary of top management, but put the screws to our suppliers and our own employees.
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akatsuki 8:28AM (9/08/2006)
I would rather they paid him in stock at a certain amount per year and required him to hold onto some of it for five years after employment ended, at least then he would have massive incentives to raise that stock price.
Then again, if he was already making that much money at Boeing he was probably a fool to leave to take over a dying company like Ford.
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Clarence 9:03AM (9/08/2006)
Bill Ford, having a liberal mindset, probably thinks that throwing money at a problem will solve it.
If I were hiring a new CEO for Ford I would look for three things.
1..Are you willing to work on a commission basis?
2..What are your leadership skills?
3..What kind of car do you drive?
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Edsel 9:19AM (9/08/2006)
That's chump change compared to what some "professional" athletes make. How does $20 million/year for six years to play baseball sound?
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Richard Warren 9:35AM (9/08/2006)
Base salary: 1 mil
Bonus for each 1% of market share 1 mil
Bonus for each 1/4 of profit 1 mil
Bonus for each 5% of cost reduction 1 mil
Bonus for increased value of stock 1 mil
Bonus for increase productivity 1 mil
Bonus for each gain in JD Power and CR ratings 1 mil
Bonus for each sucessful new product launch 2 bucks per vehicle
Qualifiers:
You will drive and eximine each and every car model made by your company and submit your evaluation to the board. These vehicles will not be "specials" destined just for you.
You will visit each and every plant unannounced and report on conditions to the board and ways to improve them and their efficency. You will talk with the assembly workers during these visits.
You will visit dealers unannounced and see how they compare to the competition and ask them what they see consumers want. You will use and fund a comprehensive "secret shopper" program to test how dealers treat consumers.
When you have completed all these goals and improved the companies position we will discuss your new compensation program.
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Taylon 9:38AM (9/08/2006)
That's apples and oranges about pro athletes and execs. At least with the athletes we see what they do. This guy breaks all kinds of baseball records while another breaks all kinds of football records. You see their individual performance and guage their "worth" according to it.
Who here knows what a CEO actually does to make that kind of money? Hell most of the time they appoint others to make the decisions. All I really see are high priced spokesmen.
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rwdmtparkingonly 9:39AM (9/08/2006)
This guy in only worth about 1 million, but because of the UAW Ford has to pay him at least 10 million. He's going to be sorry when he runs Ford out of business, or when Ford replaces him with a cheaper, harder working CEO from a foreign country like Brittan or Germany. Damn American CEOs and their entitlement mindset.
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