• Apr 5th 2007 at 3:02PM
  • 19
Reuters is reporting that while Ford Motor Co. posted a $12.7 billion loss last year, its new Chief Executive earned $28.18 million. And that was for four months worth of work. Alan Mulally's pay for 2006 included salary and stock options, as well as an $18.5 million bonus. The man Mulally replaced, Chairman Bill Ford, had made good on his pledge to forego compensation until the company made a turnaround, and had no salary, bonuses, or stock earnings during the first 8 months of 2006. In the grand scheme of things, $28 million is a drop in the bucket compared to the huge corporate losses Ford has posted, but hopefully Ford is getting what they are paying for with their new CEO. Only time will tell, as the automaker isn't expected to get back into the black until 2009 at the earliest.
In all fairness, Mulally's package included a $7.5 million signing bonus and Ford had to pay an additional $11 million to compensate for getting him out of his Boeing contract early. And in case some think Ford would be smart to dump him and take the company in a different direction, the EXIT package would be almost as big. If the CEO is released during his first five years on the job, his exit package is valued at $27.54 million. Mulally gets that amount if he is let go for anything other than cause. That includes being let go due to a merger or bankruptcy filing. To put it in perspective, Ford President of the Americas Mark Fields made $5.57 million last year. That included a salary of $1.25 million and something related to using a jet. And CFO Don Leclair had $4.4 million in total compensation for 2006.

[Source: Reuters]

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    • 1 Second Ago
      • 8 Years Ago
      "Instead of paying the factory workers more to do a better job..."

      Factory workers get paid enough already with base pay and benefits that has been killing Ford for the better part of the decade. Paying them more doesn't guarantee better results.
      • 8 Years Ago
      "There is NO MAN NOR NO WOMAN IN THIS WORLD WORTH THAT KIND OF MONEY -PERIOD! This is another example of the state of our greed and power hungry nation."

      It's called capitalism. Maybe you've heard of it?

      How much of your income do you give back? Oh... you're not overpaid? Only people who make more than you are overpaid? How convenient for you.
      • 8 Years Ago
      You are quite an smiling asshole, you know that? Not forgetting to fill your own pocket's with a lot of cash but your achievement with FORD suicks and is a LOSER'S ONE. Alway's smilling on the pictures but there isn't much to smile or is it? These are not damn airplanes but I'll think you know by now, not?
      • 8 Years Ago
      Why wonder he's all smiling and feeling warm and fuzzy in the photo.
      • 8 Years Ago
      If he can turn Ford around out of their stumbling bumbling ways, then he's worth every penny because he'll save the company millions and billions in distracted, unfocused spending. So far, the jury's not only out, they're on a smoke break and are thinking of leaving early. Influencing the name-change to Taurus/Sable from 500/Montego is just more confusion to the mix and a step backward.

      The cars making their way to market now were planned well before Fields and the Mul-i-na-tor arrived. Let's see what gets green-lighted on their watch. Their intrinsic operating costs and bloated dealer network with at least twice as many dealers as they need will plague them well beyond whether the new cars they produce are popular or not.

      I'm not even slightly convinced they're fixing the sticky internal stuff and distractions because their public face in marketing and PR remains so disjointed, inconsistent and wasteful.
      • 8 Years Ago
      This sounds outrageous to us, but I am assuming that this kind of pay is normal. I think he is doing a great job so far. He is leading the company in a way Bill Ford wanted to, but just could not. The new products are what is going to help them, and as long as they continue with them, there is no reason they won't be in the black come 2009.
      • 8 Years Ago
      He got 28 million for 4 months of work? no wonder Ford is heading down. Instead of paying the factory workers more to do a better job, one guy makes all the money. I saw Toyota's pay structure and now I see why their company is so successful.
      • 8 Years Ago
      the guy left a secure job where he was making much more. if he turns around the company, he is worth every penny. it actually seems kind of low, i mean dick cheney gets paid more than that and he doesnt even still 'work' for halibuton.
      • 8 Years Ago
      Reminds me of an old Dilbert cartoon:

      "The CEO, stepping down today, made more money as CEO than the entire company. When asked, he responded 'Maybe you should've bought stock in me! Who's your daddy?'"
      • 8 Years Ago
      Hell, I'll a better job for GS-13 pay.
      • 8 Years Ago
      This is appalling. Imagine how the people who have devoted 25 years of blood and sweat to Ford must feel right now. This is everything that is wrong with the US automotive industry and why they deserve to be out of business!
      • 8 Years Ago
      Those defending his obscene salary must be overpaid also.

      This is another example of the state of our greed and power hungry nation.

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