Ford lovers..wonder why the co. is going..
..down the sewer? Here is one reason for ya!
Ford CEO: $28M for 4 months work
Former Boeing exec got $18.5 million bonus, almost $9 million in stock and options and base salary at annual $2 million rate, according to proxy.
April 5 2007: 6:31 PM EDT
NEW YORK (CNNMoney.com) -- Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job, according to the company's proxy statement filed with the Securities and Exchange Commission Thursday.
The Ford (Charts) pay package for Mulally comes on top of the $7.4 million that aerospace company Boeing (Charts) had previously reported paying him for his eight months running that company's commercial aircraft unit before he made the move to Ford at the beginning of September.
Mulally's pay package at Ford included a $7.5 million hiring bonus, as well as $11 million that Ford described as an offset for forfeited performance and stock option awards at Boeing. In addition he received $55,469 for relocation costs and temporary housing.
Big Three sales slide continues
His base salary was $666,667, which works out to annual pay of about $2 million. He also received restricted stock grants, which the company valued at $920,404, as well as 3 million stock options valued at $7.8 million. The stock options are not yet exercisable, and they have an exercise price of $8.28, or about 4 percent above current prices.
The details of the compensation packages and costs come as Ford moves ahead with plans to close plants and cut more than 30,000 hourly positions from the company in an effort to stem losses.
The company had disclosed in a footnote buried on page 228 of an earlier filing with SEC that Mulally saw the value of his stock bonuses increase to $6 million from the originally agreed upon $5 million "after reviewing the company's 2006 performance results and Mr. Mulally's leadership role in progressing his key priorities."
The filing was made the day after Mulally was the keynote speaker at the start of the New York auto show.
Executive Chairman Bill Ford Jr., who had held the CEO post until Mulally was hired, had agreed in May 2005 not to receive any pay, bonus or stock grants until the company's core automotive operations returned to profitability.
But the proxy listed Ford's compensation for 2006 as $10.5 million, down 21 percent from $13.3 million listed in 2005. Most of that compensation for 2006 was the estimated value of earlier stock grants and options that vested and were recognized during the year, according to the filing. The great-grandson of the company's founder had started as CEO of the company in 2001.
The proxy also discloses that Mark Fields, the head of Ford's operations in the Americas, used company jets for personal travel at a cost to the company of $517,560 in 2006.
Ford executives' use of corporate jets for personal travel cost the company almost $1 million in 2006, as Ford, Mulally and Jim Padilla, who retired as president and chief operating officer on July 1, were required to use the jets for all of their business and personal travel "for security reasons."
An earlier filing by Ford had disclosed that Mulally can request that his wife, children and guests be able to use Ford corporate jets at company expense, even without him being on the flight. The proxy filing does not detail if that occurred during his time with the company in 2006.
The Ford family's $581 million loss
Bill Ford's personal use of the jets cost the company $185,232, while Mulally's use cost the company $172,974 and the cost for Padilla was $82,265 for the six months he was with the company during the year.
Fields's use of the jet to fly back and forth to see his family in Florida on weekends was part of his employment contract with the company. But it became a subject of controversy when it was first reported by a Detroit radio station in late 2006. At that time the company had only disclosed Fields use of the jet had cost it $214,479 in the last three months of 2005. In January, Fields announced he would fly commercial jets instead, at company expense.
The filing comes as Ford, General Motors (Charts) and DaimlerChrysler's (Charts) Chrysler Group prepare to start negotiations with the United Auto Workers union to see concessions and labor cost savings when their current contracts end in September.
Ford, traditionally No. 2 in U.S. auto sales, could lose that long-held position to Toyota Motor (Charts) this year as the Japanese automaker opens plants here and gains market share as the traditional Big Three lose ground.
Ford announced in March that all full-time staff would receive some form of modest bonus for 2006, as it attempted to improve morale in the middle of a downsizing.
Most salaried workers and supervisors received between $300 to $800, depending on their location and rank in the company. Most union members received about $500. The company did not detail the overall cost of the bonus program, but the widespread bonuses cost the company at least $62 million, based on the 125,000 employees who were eligible for the payment.
CEO pay growth eases - slowest in 4 years
Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job.
I don't have anything against making money and doing well but some people are just slop hogs[}:)]
Ford CEO: $28M for 4 months work
Former Boeing exec got $18.5 million bonus, almost $9 million in stock and options and base salary at annual $2 million rate, according to proxy.
April 5 2007: 6:31 PM EDT
NEW YORK (CNNMoney.com) -- Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job, according to the company's proxy statement filed with the Securities and Exchange Commission Thursday.
The Ford (Charts) pay package for Mulally comes on top of the $7.4 million that aerospace company Boeing (Charts) had previously reported paying him for his eight months running that company's commercial aircraft unit before he made the move to Ford at the beginning of September.
Mulally's pay package at Ford included a $7.5 million hiring bonus, as well as $11 million that Ford described as an offset for forfeited performance and stock option awards at Boeing. In addition he received $55,469 for relocation costs and temporary housing.
Big Three sales slide continues
His base salary was $666,667, which works out to annual pay of about $2 million. He also received restricted stock grants, which the company valued at $920,404, as well as 3 million stock options valued at $7.8 million. The stock options are not yet exercisable, and they have an exercise price of $8.28, or about 4 percent above current prices.
The details of the compensation packages and costs come as Ford moves ahead with plans to close plants and cut more than 30,000 hourly positions from the company in an effort to stem losses.
The company had disclosed in a footnote buried on page 228 of an earlier filing with SEC that Mulally saw the value of his stock bonuses increase to $6 million from the originally agreed upon $5 million "after reviewing the company's 2006 performance results and Mr. Mulally's leadership role in progressing his key priorities."
The filing was made the day after Mulally was the keynote speaker at the start of the New York auto show.
Executive Chairman Bill Ford Jr., who had held the CEO post until Mulally was hired, had agreed in May 2005 not to receive any pay, bonus or stock grants until the company's core automotive operations returned to profitability.
But the proxy listed Ford's compensation for 2006 as $10.5 million, down 21 percent from $13.3 million listed in 2005. Most of that compensation for 2006 was the estimated value of earlier stock grants and options that vested and were recognized during the year, according to the filing. The great-grandson of the company's founder had started as CEO of the company in 2001.
The proxy also discloses that Mark Fields, the head of Ford's operations in the Americas, used company jets for personal travel at a cost to the company of $517,560 in 2006.
Ford executives' use of corporate jets for personal travel cost the company almost $1 million in 2006, as Ford, Mulally and Jim Padilla, who retired as president and chief operating officer on July 1, were required to use the jets for all of their business and personal travel "for security reasons."
An earlier filing by Ford had disclosed that Mulally can request that his wife, children and guests be able to use Ford corporate jets at company expense, even without him being on the flight. The proxy filing does not detail if that occurred during his time with the company in 2006.
The Ford family's $581 million loss
Bill Ford's personal use of the jets cost the company $185,232, while Mulally's use cost the company $172,974 and the cost for Padilla was $82,265 for the six months he was with the company during the year.
Fields's use of the jet to fly back and forth to see his family in Florida on weekends was part of his employment contract with the company. But it became a subject of controversy when it was first reported by a Detroit radio station in late 2006. At that time the company had only disclosed Fields use of the jet had cost it $214,479 in the last three months of 2005. In January, Fields announced he would fly commercial jets instead, at company expense.
The filing comes as Ford, General Motors (Charts) and DaimlerChrysler's (Charts) Chrysler Group prepare to start negotiations with the United Auto Workers union to see concessions and labor cost savings when their current contracts end in September.
Ford, traditionally No. 2 in U.S. auto sales, could lose that long-held position to Toyota Motor (Charts) this year as the Japanese automaker opens plants here and gains market share as the traditional Big Three lose ground.
Ford announced in March that all full-time staff would receive some form of modest bonus for 2006, as it attempted to improve morale in the middle of a downsizing.
Most salaried workers and supervisors received between $300 to $800, depending on their location and rank in the company. Most union members received about $500. The company did not detail the overall cost of the bonus program, but the widespread bonuses cost the company at least $62 million, based on the 125,000 employees who were eligible for the payment.
CEO pay growth eases - slowest in 4 years
Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job.
I don't have anything against making money and doing well but some people are just slop hogs[}:)]
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I can't understand these enormous pay packages for the execs of the big companies, especially the companies that are in enormous fianancial difficulty, like the auto companies.
This, combined with the outrageous union pay packages, may spell the end of the American car companies.
Very sad.
I well remember the sixties, when the American car companies made the best cars in the world, made the most money, and were the mainstay of the American economy. That was a long time ago, I guess. Very sad.0 -
actually the pay of the CEO has nothing to do with their performance. it is estimated that on a $25,000 car that $4,500 of that is from health insurance costs for employees. 0 -
Forget about being a great baseball player or astronaut nowadays. Kids should want to be a CEO just one friggin time in their lives so that they can retire after two years on the job with more money than their parents, grandparents, and great-grandparents ever dreamed existed!!! The stockholders are imbeciles - plain and simple - for enabling so-called Directors who are only interested in helping one another to feather their nests. Imbeciles enabling scumbags IMHO. Plain and simple. 0 -
Pigs get fat, hogs get slaughtered. 0 -
quote:Originally posted by newtgingrich
actually the pay of the CEO has nothing to do with their performance. it is estimated that on a $25,000 car that $4,500 of that is from health insurance costs for employees.
Yep, GM says it now pays more for health benefits per vehicle than it does for steel.0 -
Alan Mulally was an engineer at Boeing for many years and worked on the developement of several of their most popular commercial airliners. He later became a Sr. VP and then president of their entire commercial aircraf operations, not bad for an idiot engineer. The man helped to turn Boeing around make them competitive against rival Airbus and he should be Boeing's CEO, but because he was passed over it does not surprise me that he left. The man has a proven track record for turning red ink into black and that was why he was hired by Ford. That $7 a million signing bonus to hire him won't mean diddly to Ford's stockholders if the company can get back on to it's feet, or at least to it's knees. I'm sure all of them would love Ford to start paying a divedend again and get stock values out of single digits. 0 -
quote:Originally posted by PC800
quote:Originally posted by newtgingrich
actually the pay of the CEO has nothing to do with their performance. it is estimated that on a $25,000 car that $4,500 of that is from health insurance costs for employees.
Yep, GM says it now pays more for health benefits per vehicle than it does for steel.
FWIW, I do NOT believe everything that the executives of any company say so as to cloud my judgement of what MAY be the whole truth and nothing but the truth. Greed trumps honesty and integrity every time.
Fact: You do NOT reward mediocrity, let alone incompetence IF you want to succeed. How far, how long, how much do we need to see and endure before we say enough is enough? I encourage you to look at this objectively. Why are the Japanese car makers eating our lunch?
I'm eagerly looking forward to the day when a foreign entity buys up GM and Ford lock, stock and barrel and and kicks these overpaid, overcompensated arrogant scumbags out on their fat arses. It will be the best thing for the American auto worker and industry and consumers in the long run IMO.0 -
Ford is a steal right now. $8 a share. Put 1000, or even 500 in your IRA.
You'll thank me in fifteen years.0 -
quote:Originally posted by Slow_Hand
quote:Originally posted by PC800
quote:Originally posted by newtgingrich
actually the pay of the CEO has nothing to do with their performance. it is estimated that on a $25,000 car that $4,500 of that is from health insurance costs for employees.
Yep, GM says it now pays more for health benefits per vehicle than it does for steel.
FWIW, I do NOT believe everything that the executives of any company say so as to cloud my judgement of what MAY be the whole truth and nothing but the truth. Greed trumps honesty and integrity every time.
Fact: You do NOT reward mediocrity, let alone incompetence IF you want to succeed. How far, how long, how much do we need to see and endure before we say enough is enough? I encourage you to look at this objectively. Why are the Japanese car makers eating our lunch?
I'm eagerly looking forward to the day when a foreign entity buys up GM and Ford lock, stock and barrel and and kicks these overpaid, overcompensated arrogant scumbags out on their fat arses. It will be the best thing for the American auto worker and industry and consumers in the long run IMO.
Japs are eating our lunch because they don't have the unions to contend with, that is why. And in past years, American cars were sub-par, I would blame that a lot on the unions also. There are union agreements in place that forced American companies to just pump out product to keep the union workers working, instead of shutting down assembly lines and consolidating product to cut costs and reinvest in design and quality controls. Thankfully American cars are now back up to quality standards but the unions are still killing the companies. The unions would rather drive the companies out of business than give concessions on their rediculous wages and benefits. You can't make a profit when you have to pay some semi-skilled high school grad $40.00 an hour to bolt a car together going down an assembly line. As for the CEO high paying jobs, if American companies won't pay them that sort of money, foreign companies will. They don't have to work for car companies you know, CEOs can run any venture and make big bucks. Being jealous of the CEOs is not going to fix the car companies problems.0 -
There are two items to look at when evaluating that pay. One, much of what he got was up front compensation for what he gave up when he left Boeing for Ford, not actually pay he earned at Ford during this past year. Would you leave your current job, giving up the benefits accrued, if you could not recover them in the pay and/or benefit package you got at your new employer? Two, run those millions out on a per car/truck basis, and it wouldn't amount to the cost of the retaining ring for one headlight per car and truck on the total production cost folks. Get a grip on the money we're looking at here and forget what you and I make. This is a different league; it's not the local slow pitch softball team. 0 -
A general question here (okay, it's more of a rant) aimed at absolutely no one here on GB:
YOU is the larger and more universal "you".
When was the last time YOU were handsomely rewarded - in multiples of a 7-figure salary - for out-and-out mediocrity? For NOT getting the job done? For NOT turning things around? For NOT getting the company you work for healthy again OR at least well enough to stop the bleeding? For NOT leading your organization forward and out of the fog?
I don't know about any of you, but the corporations I worked for as a manager - and they were fairly large ones - had very little tolerance for lackluster, mediocre performance from their team.
I refuse to accept that any of these CEO's actually earn what they are compensated with. It's a mad scramble at the top for as much as you can get while you can get it. Where's the motivation to succeed? Success means nothing if you can still get the big brass ring in spite of your own dismal failure. So what if YOU never ever get hired again? You'll already have more than you'll ever need to live well beyond comfortable for the rest of your life.
That is NOT capitalism IMHO - rather, it's grand theft. Theft that's apparently sanctioned - and endorsed - by our society.
Just my 2 cents worth of disgust for CEO's, B-o-D's and companies who believe that everyone is a pie-eyed, naive bumpkin, fresh off the turnip truck.0 -
Not a big deal the ex-ceo of Home Depot got that $210 million dollar severance package as sells fell when he was the ceo. Japanese companies don't have unions but they are actually one of the better companies to work for, and treat their employees well. Sperry is probably right they will make it out but it will take some time. For decades now the persona was that foreign cars are more reliable then domestic cars and their paying for it, losing the market to foreign car manufacters.
The reason they can give so much money away is that it's not the boards money it's the share holders.0 -
quote:Originally posted by Sperry
Ford is a steal right now. $8 a share. Put 1000, or even 500 in your IRA.
You'll thank me in fifteen years.
they were about the same 3 years ago0 -
quote:Originally posted by Slow_Hand
A general question here (okay, it's more of a rant) aimed at absolutely no one here on GB:
YOU is the larger and more universal "you".
When was the last time YOU were handsomely rewarded - in multiples of a 7-figure salary - for out-and-out mediocrity? For NOT getting the job done? For NOT turning things around? For NOT getting the company you work for healthy again OR at least well enough to stop the bleeding? For NOT leading your organization forward and out of the fog?
I don't know about any of you, but the corporations I worked for as a manager - and they were fairly large ones - had very little tolerance for lackluster, mediocre performance from their team.
I refuse to accept that any of these CEO's actually earn what they are compensated with. It's a mad scramble at the top for as much as you can get while you can get it. Where's the motivation to succeed? Success means nothing if you can still get the big brass ring in spite of your own dismal failure. So what if YOU never ever get hired again? You'll already have more than you'll ever need to live well beyond comfortable for the rest of your life.
That is NOT capitalism IMHO - rather, it's grand theft. Theft that's apparently sanctioned - and endorsed - by our society.
Just my 2 cents worth of disgust for CEO's, B-o-D's and companies who believe that everyone is a pie-eyed, naive bumpkin, fresh off the turnip truck.
Working for the fed gov, I could name you hundreds of people that get rewarded for mediocrity all the time. In fact it is one of the best ways to get promoted, because other people want to get rid of the mediocre but can't fire them. So they promote them into another job away from them. It happens ALL the time.0 -
Actually alot of Ford's parts now come from...Germany....hmm my rear wheel bearing for my Ford Focus was stamped "made in Germany".....don't they have.....unionized labor over there?
If you think about it what country has the biggest Union right now? My money is on...CHINA.
Communism is a Union.0 -
quote:Originally posted by PC800
quote:Originally posted by Slow_Hand
A general question here (okay, it's more of a rant) aimed at absolutely no one here on GB:
YOU is the larger and more universal "you".
When was the last time YOU were handsomely rewarded - in multiples of a 7-figure salary - for out-and-out mediocrity? For NOT getting the job done? For NOT turning things around? For NOT getting the company you work for healthy again OR at least well enough to stop the bleeding? For NOT leading your organization forward and out of the fog?
I don't know about any of you, but the corporations I worked for as a manager - and they were fairly large ones - had very little tolerance for lackluster, mediocre performance from their team.
I refuse to accept that any of these CEO's actually earn what they are compensated with. It's a mad scramble at the top for as much as you can get while you can get it. Where's the motivation to succeed? Success means nothing if you can still get the big brass ring in spite of your own dismal failure. So what if YOU never ever get hired again? You'll already have more than you'll ever need to live well beyond comfortable for the rest of your life.
That is NOT capitalism IMHO - rather, it's grand theft. Theft that's apparently sanctioned - and endorsed - by our society.
Just my 2 cents worth of disgust for CEO's, B-o-D's and companies who believe that everyone is a pie-eyed, naive bumpkin, fresh off the turnip truck.
Working for the fed gov, I could name you hundreds of people that get rewarded for mediocrity all the time. In fact it is one of the best ways to get promoted, because other people want to get rid of the mediocre but can't fire them. So they promote them into another job away from them. It happens ALL the time.
+1 on the promos,cant fire the idiots so....PROMOTION![V]0
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