Bill Ford and Alan Mullaly vow to take 30% pay cuts

Michael Harley — Wed, 25 Feb 2009 10:29:00 EST

Filed under: Ford, Earnings/Financials, UAW/Unions

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]

Bill Ford and Alan Mullaly vow to take 30% pay cuts originally appeared on Autoblog on Wed, 25 Feb 2009 10:29:00 EST. Please see our terms for use of feeds.

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GM execs take massive cut, Lutz, Wagoner see pay halved

Chris Paukert — Sun, 30 Apr 2006 18:03:00 EST

Filed under: Trends, GM, Earnings/Financials

General Motors' executives took a massive pay cut in 2005, after the board of directors not only voted to withhold bonuses, it also slashed base pay of some of the company's highest profile executives.

Among them, chairman and chief executive officer Rick Wagoner took a 46 percent hit to his bottom line, from $10.1 million in 2004 to $5.5 million in 2005. Vice chairman and head of product development Bob Lutz took an even bigger percentage hit, and will take home $3 million this year (he raked in $6.5 million in 2004). John Devine, former GM vice president and CFO banked $3.9 million, down from $6.4 the year prior.

Wagoner's salary of $2.2 million didn't change in 2005, but he as part of a round of voluntary pay cuts this past February, the top executive will see his base number cut in half.

The figures came from GM's federal proxy report issued Friday, which sets the table for discussions at the upcoming June 6 shareholder meeting. Among other things, investors will vote on six proposals, one of which calls for the repayment of executive performance bonuses awarded based upon faulty earnings reports (before accounting corrections forced a restatement). The board reportedly discounts such suggestions, arguing that antifraud legislation and rules already in place render such changes unnecessary.

Other shareholder ideas to be floated at the meeting include splitting the offices of chairman and CEO, banning the issuing of further stock options to GM employees, altering voting practices for the board of directors, and a call for a new report on the company's effect on global warming.

According to reports, the board opposes all of the above.

[Sources: The Detroit Free Press; General Motors]

GM execs take massive cut, Lutz, Wagoner see pay halved originally appeared on Autoblog on Sun, 30 Apr 2006 18:03:00 EST. Please see our terms for use of feeds.

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