Mulally and Wagoner reconsider $1 salary for federal aid
Chrysler CEO Bob Nardelli was the only auto exec who readily offered to work for a buck if it meant securing federal aid from Congress in the form of bridge loans. Ford CEO Alan Mulally famously told the politicians sitting before him, "I think I'm OK where I am." We would be OK too with the tens of millions of dollars that Mulally has received as compensation so far from Ford. GM CEO Rick Wagoner was described as being "demur" when asked about lowering his salary to a $1. Now it seems that the boy from Boeing and the Ricker are reconsidering their previous reluctance to take a pay cut. The Detroit Free Press is reporting that both CEOs are prepared to tell Congress on Thursday that they would be willing to work for $1 if it meant getting the approval of Congress for federal loans.
Congress had previously demanded the each of the Detroit 3 automakers submit a detailed plan to Congress outlining how they would use the federal loans to return to profitability and ensure the long term viability of their companies. Ford is the first to turn their homework in, which reveals the Blue Oval expects to be making money again in 2011 and will have an all-electric sedan on sale by then. All it's asking in return is a $9 billion slice of the $25 billion federal aid package that would only be used if necessary. Ford already has enough credit to survive through 2010 and only envisions needing the fed's money if something happens to either GM or Chrysler.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 2)
Jake 1:32PM (12/02/2008)
Heck, I'd like to see a detailed plan from congress on how they are going to return our government to viability any time in the next 50 years.
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The Other Bob 3:39PM (12/02/2008)
No kidding.
jamie 1:54PM (12/02/2008)
ROFLOL!
Niels 1:33PM (12/02/2008)
They better work for an effin' dollar. They get paid WAy too much just for sitting on their asses doing nothing.
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gforce 1:44PM (12/02/2008)
Now, are you referring to the CEOs or to Congress?
Sea Urchin 1:32PM (12/02/2008)
After making 17+ million a year-Rick "Red Ink" Wagoner
and 21+ Mill for Mullaly i am sure they'll get by with $1 a year.
Plus they'll make that up once they will retire, 100+ million Golden Parachute will come in a hurry.
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jamie 1:56PM (12/02/2008)
No doubt they could sell that dollar on eBay for a pretty penny and cash in on it's historic value. Just sayin...
Fernando 2:21PM (12/02/2008)
This is a move meant to just be symbolic of our stupidity. Seriously, these guys will pay themselves $1 as salary but then will add millions of dollars in compensation. So, where does that leave us? Right where we started.
If they promise to take home NO MORE than $1 in salary AND compensation (including stock options) then I'll believe that they're in it just for the good of the company. However, I doubt we'll see that...EVER!
geo.stewart 2:54PM (12/02/2008)
I thought Nardelli only got paid on the profit of the company anyway, so $1 would be a raise?
you can pick at them if you want but how many of you are willing to bet your salary for a year based on a finicky public, crazy market, and employees that may or may not care about their job anyway?
I've seen marked improvement in the product offerings from GM and Ford but thats still a risky gamble.
Dave 6:57PM (12/02/2008)
Ford and GM are currently producing the best cars they ever have.
And they have negotiated the best UAW contract in decades.
Bill Ford gave up leadership of Ford for a reason...it aint an easy job.
simon 1:35PM (12/02/2008)
This is just stupid. Why not ask all the laid off auto workers who are getting paid but not doing any work to take a $1 per year too?
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happy_penguin 2:57PM (12/02/2008)
Laid off autoworkers are likely weeks from poverty. They don't have millions in the bank like CEOs do.
jg 4:04PM (12/02/2008)
Laid off but getting paid?
happy_penguin 4:19PM (12/02/2008)
I meant if not being paid, silly.
compy386 1:35PM (12/02/2008)
According to your post below, Mulally has already agreed to $1 salary should Ford use the bailout money.
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Tool 1:37PM (12/02/2008)
Mulally is actually a very good CEO. The $1 move is largely symbolic.
Rick Wagoner is another issue entirely. Whatever happens, 'The Rick' is out of there, so he can say he will work for a $1/year, but will actually be getting $0. Of course, there will be a large pay day upon his firing, but if that is what it takes to get rid of a guy who has lost $73 billion since 2004, so be it.
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blogged to death 1:38PM (12/02/2008)
Heck...don't pay him $1 to stay...pay him $50M just to retire as he is one of it's biggest failures. GM would be much better off without him.
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Invisible 1:38PM (12/02/2008)
Sure they will cut their base pay from 2 million a year to $1.00.
But I bet they will not give up the extra 10-20 million a year they get in ""extras"".
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PaulPaul 1:40PM (12/02/2008)
... this is their plan that they brought to Congress????
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Auari 1:48PM (12/02/2008)
that's my thought too
Give us 10 billion, and I the CEO will take 1 dollar for a year income.
That was my brainstorming for weeks...... LOL?