• 53
Bill Ford made the sacrifice, now he's earned the reward. After living sans salary from Ford for five years, Bill is due to receive $4 million in cash and up to $12 million in stock options. That doesn't cover the entire five years, but rather the last two – it's what he would have made from 2008 to now. Ford made his pledge before the downturn and couldn't have known he'd go five years before "sustainable profitability" was achieved, so the compensation committee backdated his pay to January 1, 2008.

"Sacrifice," in this case, might be a relative term, but still, we give the man full credit for stepping aside and waiting until real money was coming in. Some of his earninsg will go toward repaying loans he took out to buy Ford stock when the chips were down, and another million is going to set up a college scholarship for the children of Ford workers.

[Source: Detroit News | Image: Scott Olson/Getty Images]


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
  • 53 Comments
      • 4 Years Ago
      Pay the man. As the others said, he has done a good job in all areas and proven himself more than just a man in a nice suit. It's strange to admit, but Ford will probably be at the top of my shopping list next time I need a car. Five years ago, I would hardly even consider a Ford. They seem to be getting consistently better and making the right moves. GM is just a mess and who would even buy a Chrysler?
      • 4 Years Ago
      Reward for a job well done.
      • 4 Years Ago
      Give Bill a new Ford...he deserves it.
        • 4 Years Ago
        Mullaly did just that -- he gave Bill a new Ford Motor Co.
      • 4 Years Ago
      i never thought i would say this but...

      Kudos Ford!
      JD5161
      • 4 Years Ago
      After reading some of the comments I realized that the "Ford" example should have been followed by other executives which might have saced American Tax Payers some hard earned dollars. As to "greening up" Ford , all you have to do is check out the world vehicles from Ford, especially from europe. If you do, you will there influence on the present and future models here in the U.S. My hat is off to Bill Ford for doing what he did regardless of who is on the compensation board at Ford.
        • 4 Years Ago
        @JD5161
        "Ford borrowed the money before the financial collapse"

        Ford -chose- to borrow the money and were smart to do it when the money was available. However, this move was incredibly risky. Everything of value (office buildings, factories, tooling, the brand name itself) was put up as collateral. It could have turned out very badly. I'm glad that it turned out well.

        It's really not correct to say "GM and Chrysler were not afforded this edge and had to file bankruptcy." GM and Chrysler made high level management choices on their own and nobody denied or failed to afford them any particular advantage. They could have made different choices, but didn't and had to live with their choices.
      • 4 Years Ago
      I can appreciate this as a symbolic gesture, but it's nothing more.
        • 4 Years Ago
        I'd be more than happy to tell you why I didn't answer your question. I didn't answer your question directly because I assumed you knew what this meant:

        "Furthermore, Bill Ford has not gotten out of the way, he's still the chairman of the board"

        The CEO answers directly to the Board of Directors, and this means Bill Ford is essentially Mulally's boss. Hence, I don't see how Bill Ford got out of Mulally's way when Mulally is accountable to him.

        Furthermore, I'm a CPA that works mostly with large estates. Your assumption that I hate the rich is almost as dumb as your question.

        So, let me ask you a question. Are you done trolling internet forums for the day? If not, try advrider.com. The boys in JoMomma will be more than happy to rip you a new one.
        • 4 Years Ago
        Nativeson,

        What else should he have done? Please share your thoughts.

        I'm curious to hear you explain how demonstrating the humility to admit that the problem is bigger than your skill set, installing a new leader and then getting out of the way of the new leader so he can succeed is symbolic? That seems pretty concrete to me.
        • 4 Years Ago
        "Hence, I don't see how Bill Ford got out of Mulally's way when Mulally is accountable to him."

        Nativeson, you are full of hot air.

        Please give some examples (that means actual evidence, not your opinion) of Alan Mulally driven initiatives that Bill Ford quashed. You may cite initiatives quashed with merit (there were demonstrably bad ideas) and those that were quashed without merit (had the initiative been supported the company would have been likely to benefit.) In addition to public statements by named industry analysts or experts, you may also cite as evidence information from unnamed sources and "industry rumors" as long as the information was published in a mainstream in print or online publication such as the Wall Street Journal, the New York Times, Bloomberg Business News, Forbes, Fortune, any major newspaper or automotive industry trade publications.

        For bonus credit, please also compare and contrast the relationship between Bill Ford and Alan Mulally with that of Ferdinand Piech any any of Piech's subordinates current or past. Piech has a well established track record of interfering with the decisions of his subordinates, and this is well documented in the press. If your statement about Bill is true, you should have no problem making the comparison.
        • 4 Years Ago
        @nativeson As I've asked you before multiple times, please provide some evidence to support your position. Its probably not realistic for you to respond to a very interesting but long essay question (sorry turmanchu), so I'll make it easy for you.

        We've discussed a number of things, but I'm only now interested in you substantiating your assertion that Bill Ford has not stepped aside and is therefore getting in the way of Alan Mulally's progress. Please provide links to sources that clearly support your position.

        On the other hand if you want to just admit that you made a mistake by making that false claim, I'd compliment you. That would be a very commendable, upstanding, Bill Ford thing to do.
        • 4 Years Ago
        I specifically asked you to respond to "how demonstrating the humility to admit that the problem is bigger than your skill set, installing a new leader and then getting out of the way of the new leader so he can succeed is symbolic?" and you failed to do that which suggests to me that you are going out of your way to criticize him despite facts to the contrary.

        Maybe you just hate him because he's rich? That seems to be the jist of your post. If that's really where you're coming from, please just say so and stop trying to justify your prejudice.

        Disclaimer: I'm not rich, but I sure as he11 wish I was! See you at the Country Club, nativeson (well, probably not...)
        • 4 Years Ago
        Yes, it was symbolic. But when you're asking the rank and file to take a pay cut you damned well better be willing to take one yourself. Symbols matter.

        As far as I'm concerned Alex nailed this topic with the first post and there's really nothing else to be said about it. Way to be a stand up guy Bill Ford.

        • 4 Years Ago
        you're nothing if not entertaining, gasser.
        • 4 Years Ago
        You claim that Bill Ford has not as I put it, gotten out of the way. Please provide evidence by citing specific examples of Alan Mulally driven initiatives that were quashed by Bill Ford. You will need to provide links to mainstream online sources that support your examples.
        • 4 Years Ago
        You can't argue with my logic so you ask me for things impossible to produce?
      • 4 Years Ago
      I give him as much sympathy as I gave the NBA players when they went on strike a few years ago.
      Boo freakin' hoo.
      • 4 Years Ago
      He deserves it.
      • 4 Years Ago
      Backdating his pay to the beginning of the downturn is insane to me.

      So now he will have had no salary for a period when Ford was doing poorly, but being paid very well for the period where Ford was doing awfully.

      That's an unusual corporate structure where the board gets paid that much.
        • 4 Years Ago
        I didn't understand why they did it that way either.

        From a goodwill with the employees and stockholders perspective it seems like it would have been better to just say "We're paying him X amount for the last five years work, minus the loans we made him."

        My guess is that since Ford is a publicly traded company and all high level executives work under written contract, the company had to structure the compensation within certain guidelines to maintain compliance with SEC regulations, Sarbanes-Oxley and whatever other million things have to be followed by a public company these days.

        Plus, if the company is just randomly giving execs money not as specified in their contract some lawyer will start a class action suit based on securities laws claiming the money should have been paid to stockholders as dividends or something like that.
      • 4 Years Ago
      Zero.

      The members of the Ford Motor Co. Compensation Committee are:

      Richard Manoogian , Committee Chair
      Anthony Earley Jr.
      Ellen Marram
      John Thornton

      Source: http://investing.businessweek.com/research/stocks/people/committees.asp?ticker=F:US

      Next time you think you've got a real zinger, please spend three seconds doing some simple research using your preferred Internet search engine so you don't look like a tool. You've got a well deserved half star on this comment not because you've criticized Ford but because your criticism is without merit. As the kids on the Internets say "Massive Fail!"
      • 4 Years Ago
      all i can say is, well done Bill, well done, and today were here talking about this because the end product, is being so well recieved.

      ""Let the good times roll""
      • 4 Years Ago
      Bill deserves a whole bunch of credit for Ford's health, no doubt.

      On the other hand... compensation for a Chairman is normally based on benchmarking and focused on retention of that employee....and it's not really likely that Bill Ford is going to go work for the competition is it? Can't see him being recruited by GM, for example. Mullaly, on the other hand...they need to hang on to him for a while.
        • 4 Years Ago
        "compensation for a Chairman is normally based on benchmarking"

        No, it -should- be based on benchmarking, but usually isn't. Many U.S. executives make millions even when the company is losing money and/or the stock price is dropping off a cliff. Even conservative business publications like Forbes regularly attack companies that reward poor performance because it happens so often. We live in a culture that gives poorly performing executives huge rewards for bringing in poor results, then gives them huge payouts to leave despite their poor performance.

        I'm all for big executive compensation, but only when the employees and shareholders are also receiving good compensation for their labor and/or investments. Bill did the right thing by not getting paid millions when the company was having serious difficulties in both earnings and share price.
    • Load More Comments