• Mar 1, 2007
Alan Mulally went to Ford to kick ass and chew bubblegum, and now he'll be able to afford more Hubba Bubba. It's really a stock option bump -- from $5 to $6 million -- as a reward for taking FoMoCo by its earlobes and attempting to drag it out of the mire it's stuck in. We have seen more focus out of Dearborn as Mulally rallies the troops, and the compensation is recognition that the good fight is being waged. Intent on keeping its four-star general focused, the board has also allowed Mulally's immediate family and guests access to Ford aircraft for personal use, even without the presence of the CEO. While it may seem egregious – it makes sense. Rather than chaperone people around, Mulally's time is better spent running Ford. Also, since his family hasn't completed a relocation from Seattle, it allows them to get together with a less heroic effort. Even CEOs want to see their spouses and children, so while there are hefty expenses associated with flying the corporate jets around, a distracted, ineffective CEO is far more costly.
[Source: autonews - Sub Req'd]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 25 Comments
      • 7 Years Ago
      6 million dollars will buy 240 well equiped ford escape v6. Would that make a difference in Ford's finance EVEN if it was cash spent (and it is not, it's stock option)

      Putting things in perspective is key. You have to pay CEOs a lot of money to convince them to head a company in such deep shit as Ford. It's not an easy job, as much as we armchair CEOs would like to believe.

      • 7 Years Ago
      You people whine when the people that build the cars get buy outs and lose their jobs. Then you spin and make excuses for a CEO making 20 million and wanting to see his family.
      • 7 Years Ago
      Alan Mulally is doing a terrific job mopping up the mess left by Bill Ford and Mark Fields.

      I've been very critical of BOLD MOVES--that it has been more PR than substantive results--but then again remember that GM did a lot of painful restructuring only to re-emerge much stronger.

      The thing is that GM had a strong pipeline of terrific product; however I haven't seen any indication that what is coming from Ford is what they will need to turn it around. Especially in an industry that is primarily product-driven.
      • 7 Years Ago
      Poor CEOs, can't be distracted while earning their million$$$$$$. Why doesn't Ford build them an other mansion in Michigan?
      And after he fails, he will have many more million$$$$ to look forward to leave the mess he creates.
      Fire those high paid workers who do nothing but build the junk the high price CEOs have designed and can't sell.
      Life in America for our poor, overworked, underpaid CEOs. What a shame!
      • 7 Years Ago
      Please, enlight me, that's 6 million per month or per year??? Anyway, that's a lot of money...
      • 7 Years Ago
      Stock options: the option to buy stock at todays price several years in the future.. meaning...

      1. If Ford does well, in 5 years Mulally can spend, say 3 million of his _own money_ for 4 million worth of stock
      2. If Ford doesn't do well, the options are worthless, since he could just buy the stock outside the options plan at face value and spend less.
      3. He will be spending his own money either way... money that he probably accrued from exercising stock options from other successful companies... which seems to suggest he is a competent CEO... which means he has to make tough decisions like "Give workers buyouts to save the company from going into bankruptcies later and fire everyone without so much as a card"

      I feel Ford is making better decisions. They seem to be getting back into making inexpensive cars and halting a silly effort to take their plebian brand "upscale". They will win points with consumers that way.
      • 7 Years Ago
      #14 (Ford Wannup): "I am sick and tired of all the union guys complaining about little this and that."

      Get used to it. This is America, where everyone is guaranteed the freedom of speech. And the fact that unions are ruining the Big 2.5, does not exonerate CEO's from doing the same.

      Source:
      http://www.autoblog.com/2007/02/28/thousands-leave-fords-white-collar-world-today/3#c3767938

      #15 (amorak): "The general stupidity in these 'comments' is staggering... He isn't drawing down a 'war chest' or getting more money thrown at him."

      Really? When Mark Fields had use of the Ford corporate jet, it costed Ford between $50K to $70K each week. That's about enough to hire an engineer for a whole year! And now, according to Autoblog, "the [Ford] board has also allowed Mulally's immediate family and guests access to Ford aircraft for personal use, even without the presence of the CEO." Not just for Mulally himself, but family and guests also? You don't think that is a drain on the financial resources at Ford? I find the general stupidity in your comments staggering.

      Whether you and the other CEO lovers like it or not, here is the bottom line: It is way too earlier to know whether Mulally is any good for Ford, and it is way too early to reward him with the extravagant perk of a corporate jet.
      • 7 Years Ago
      #28 (Mike): "Big Rocket, Why do you hate American car companies so much? What did they do to you?"

      Mike, why do you and the CEO apologists use misinformation so much? I do not hate American car companies. I hate the traitors who betray and financially sabotage the American car companies. Traitors and financial saboteurs such as the UAW and upper management.

      #28 (Mike): "The article doesn't tell you how long Mulally's family gets to use the company plane (most likely until they get completely relocated), it also doesn't tell you what the cost is (you are assuming from a previous article on Mark Fields)."

      Fields had his expensive perk for a long time, and did not willingly give it up. He was forced to give it up only after weeks of media scrutiny and condemnation. Why would you assume Mulally would willingly give up the same perk, even after the family relocation?

      You were right on one thing: The $50K to $70K was based on the weekly operational costs for Mark Fields alone. Since Mulally's new perk extends to him, his family, and his guests, it is going to cost more!

      #28 (Mike): "You also do not know what Mulally hasn't made the gains the board of directors wants to see... I would think that they, better than you, are able to gauge his success thus far. If the board sees the improvements they want, they will give him incentives..."

      Yes. And the board of directors had intentionally hidden the positive news from Wall Street, in an effort to artificially lower the prices of Ford stock. Does that sound remotely plausible even to you? What you wrote is complete nonsense.

      And I would not place much confidence in the board of directors at Ford, either. They have made bad decisions before, and they keep making them today. In the past, they paid too much money to hire ineffective CEOs, who led Ford down the path to where it is today. And now, the board keeps making mistakes, by awarding extravagant perks to those who have yet to prove themselves worthy.

      #28 (Mike): "Many atheletes make much more than that and many of those never produce... Investment proffesionals move money around, making millions at it, they produce NOTHING."

      Don't try to confuse the issue here. The high wages and benefits of athletes and investment professionals do not financially cripple the domestic auto industry. In contrast, the high wages and benefits of CEOs *do* financially cripple the domestic auto industry.

      #28 (Mike): "You would be a fool to think that you are going to see profit turnaround or increase in sales from 6 months of service to the company..."

      You have not yet earned the right to call anyone here a fool, especially with some of the logic in your arguments. You admitted it would be too soon to see positive results from Mulally, yet you assumed Mulally had already accomplished these positive results in secret?

      -----

      In earlier posts, I questioned the wisdom in awarding Mulally the expensive perk of the personal use of the corporate jet. For Mark Fields alone, the perk had drained $50K to $70K every week, until he was exposed by the media, and widely criticized. Now, the same perk had been awarded to Mulally, his family, and his guests. This is money that can be better spent on developing competitive products for Ford's survival.

      Some had claimed CEOs deserved to be rewarded for their good work and track record. I questioned this line of thinking. Mulally is an inexperienced newcomer to the automotive world, with no track record to speak of. He has yet to prove himself up to the task of Ford's turnaround, the job he was hired to do. With no track record and no tangible results to show for it, it is highly immature for any form of a reward.

      Now, you assumed, without basis in fact, that Mulally had indeed accomplished tangible results in Ford's turnaround, news of which the board of directors had kept hidden. I called that nonsense. The secrecy of positive financial results would only serve to deflate the prices of Ford stocks on Wall Street. No one in his right mind at Ford would want that. That is, if anyone at Ford still has a right mind these days.

      Further, you claimed that the board of directors at Ford knows best, that they are capable of judging who to reward and who not to reward. I disagreed. The board of directors have made mistakes before, and they continue to make mistakes to this day.
      • 7 Years Ago
      #25 (Ford Wannup): "Mulally has already been credited for saving Boeing Commercial."

      Mulally was compensated by Boeing to rescue Boeing. He is compensated by Ford to rescue Ford. The Ford rescue plan is far from complete under Mulally's brief tenure, and has yet to produce any tangible results. Since he has not done the job he was hired to do at Ford, he does not deserve any award from the Ford board of directors, nor does he deserve any praise from ass-kissing apologists such as yourself.

      #25 (Ford Wannup): "I only get to... lament how dysfunctional our automotive industry is."

      Part of that dysfunction comes from CEOs who brazenly drain financial resources from the companies they work for. And part of that dysfunction comes from ass-kissing apologists who see no wrong in such CEOs.

      #25 (Ford Wannup): "You my friend, need to get a life and let others much smarter, much more diligent than you..."

      I don't need to be smart or diligent. I only need to be smarter and more diligent than you. In this debate, that has not been difficult. So far, you have tried to evade key questions on Mulally's track record, by giving a lesson on English grammar. When pressed, you confused Mulally's proven track record in the aerospace industry, with his unproven track record in the automotive industry. Finally, in a desperate attempt to divert attention from the real issues, you attempt to insult and slander me with personal attacks on my intelligence. Care to try any more of your tactics? Up till now, they have been far too easy to see through and dissect.

      #25 (Ford Wannup) "If you wanted a seat in the 'debate', well...., you missed the boat."

      While you accused me of missing your imaginary boat, you missed the entire point of the debate.

      In spite of his accomplishments in the aerospace industry, Mulally is an unproven, inexperienced newcomer in the automotive industry. He has yet to do the job he was paid to do, and produce tangible results in Ford's turnaround. Due to his brief tenure, and the lack of results to show for it, it is immature to reward Mulally with the use of the corporate jet, which historically drain $50K to $70K every week from Ford's bank accounts. These are funds that should be used to develop competitive products for the future, not to reward a CEO who has yet to prove himself up to the task of what he is paid to do.
      • 7 Years Ago
      You guys have it totally wrong. Going from $5 to 6 million is nothing, especially since they're stock options. It reflects directly on how the company performs in the market, and he'll reap the benefits only if he's able to turn Ford around.
      • 7 Years Ago
      He gets a raise and frequent flyer miles while I have to stay home and draw unemployment. That really makes a lot of sense. Especially since this all could have been avoided. Ford should stop trying to bully everyone they work with.
      • 7 Years Ago
      To no. 16/ Phil:
      touché...lol.
      Another reason why those like Big Rocket need to go back to school and be educated, rather than sitting around whining about how the world is so unfair to them.
    • Load More Comments