Bill Ford and Alan Mullaly vow to take 30% pay cuts
The day after Ford and the UAW reached a tentative retiree health care deal (General Motors and Chrysler are still negotiating), the leaders of the Dearborn, Michigan, automaker have announced that they will be taking a 30 percent reduction in salaries over the next two years. A memo, signed by Ford Executive Chairman William Ford Jr. and Chief Executive Alan Mulally, addresses the pay cuts and adds that Ford's board of directors will also drop their compensation for the same period of time. In addition, performance bonuses for salaried workers and senior executives will also disappear.
As reiterated in the memo, Ford and Mulally are not wavering from their plan to go without government assistance and these recent announcements support that strategy. "We know these are challenging times and we all are affected by the tough actions we are taking... However, these are necessary actions to help us emerge as an even stronger, profitably growing Ford Motor Company for the benefit of us all." Thanks for the tip Adam!
[Source: WSJ.com | Image: Bill Pugliano/Getty]
Reader Comments (Page 1 of 3)
John P. 10:35AM (2/25/2009)
...and they didn't even have to wait for the man in the ivory tower to force it upon them.
Way to go Alan and Bill. My next new car is going to be a Ford.
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C.W. 11:14AM (2/25/2009)
well said John.
actions like these are what we need more of. enough of the finger pointing and making everyone else suffer the consequences of the terrible market. they are giving us a showing of good faith by making these choices. it's like they actually 'get it' ....
short term pains for long term prosperity. Great job Ford.
Manolo 3:05PM (2/25/2009)
When you "need" less than 50% of your salary to live it is EASY to volunteer for a 30% cut!
MikeW 10:38AM (2/25/2009)
They should take 100% pay cuts until every Ford no longer uses dual beam headlights.
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Joe K. 10:49AM (2/25/2009)
Does it get boring to write the same thing on every Ford related post? Or do you have robots doing it for you now?
But keep on fighting the good fight man... Someone has to tell everyone that the Europeans are better. Maybe one day Mullaly will read it and have the epiphany you long for.
Of course, then you'll have to find another reason to not buy Fords.
C.W. 11:17AM (2/25/2009)
save it MikeW.
posts like these are like nails on a chalkboard.
embrace a piece of positive press coming out of our domestic OEM's. how in the world is this news story anything but GOOD news?
i just dont get it. just dont post at all if its just going to be a non-sensical rant.
MikeW 12:11PM (2/25/2009)
I would figure they would actually like a salary, so they would spend one week-cracking the whip and get quad beam headlights in the:
F-150, F-superduty, Ranger, E-series (van), SportTrac, Flex, Explorer, Expedition, Escape, Focus, Mustang.
What would spur Ford to do more than just the absolute minimum, amending FMVSS108?
Lets not even talk about red turn signals
No, lets not be critical and honest about the situation.
Ford has sub-par products, they need to improve.
C.W. 1:31PM (2/25/2009)
you have sub-par comments MikeW... and i think they need to improve.
That One Person 4:53PM (2/25/2009)
Sub-par products? There are a lot of people out there who would disagree with you.
Anyways, like someone else said, say something new. You think the average consumer cares about what kind of headlamps Ford's vehicles use? Focus and Escape sales went up even without the use of quadbeams and amber turn signals. Heck, the almighty Toyota switched over to dual beams on the current Highlander.
illankid 1:55AM (2/27/2009)
Mike, let me get this straight... your bashing Ford because they arent using quad lights?? that is very sad kid. My 96 cavalier has quad headlights and when i turn the high beam on the short beam turns off. many cars also do this.Im waiting for the next guy to say i hate ford because they are not making HID available in every vehicle as an option
ronzo 10:37AM (2/25/2009)
I think my next car will be a Ford too. Not just because of this, but because of their more responsible fiscal actions over the past few years.
Listen and learn GM and Chrysler...
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Quattroporte 10:40AM (2/25/2009)
Why does Bill have that look on his face?
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Quattroporte 10:44AM (2/25/2009)
Maybe he saw the President's speech last night and was worried when President Obama said, "The nation that invented the automobile cannot walk away from it."
Yikes 10:49AM (2/25/2009)
In Bill's inner voice......
"Look -- a bright pretty light"
creigs9 11:04AM (2/25/2009)
He just beat Alan at the pocket pool tournament. Alan your doing a great job, but get a new suit.
Scott 11:43AM (2/25/2009)
They look like cartoon characters.
Randy 1:54PM (2/25/2009)
I think the look on his face is because he's thinking
"Wow, Henry Ford is my great grand daddy"
Either that or he's hoping to get noticed so he'll be considered for a Jim Henson's Muppet Revival!
;) I love Ford Either Way!
itsmeee 10:46AM (2/25/2009)
Way to go Ford! You guys have really impressed me! I think their just might be a Ford in my future :)
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Dave in MI 10:47AM (2/25/2009)
Tip of the hat to Ford. They are not draining our gov't money and have a good line of products. I hope they win.
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Yikes 10:51AM (2/25/2009)
Of course Bill and Alan can take a 30 salary cut.
What I want to see is Alan and Bill take a 30% cut in perks, stock options, bonuses, freebies........
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