Ford CEO's Compensation Not Necessarily Reflective of the Climate at Ford

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Ford revealed today in its annual proxy that Chief Exec Alan Mulally was awarded a $7.5 million hiring bonus and $11 million to “offset” the compensation he lost for leaving Boeing last year. This is an interesting bit of news, considering that the automaker hemorrhaged $12.7 billion last year. The previous CEO, Bill Ford, did not receive a cash salary, bonus, or stock awards, since he had decided in 2005 to make himself a martyr "a commitment...to forgo any new remuneration until the company’s auto unit made sustained profits,” which might’ve seemed like more of a HUGE sacrifice if his family didn’t…own the company (or a sizeable amount of it).
Another way to look at this is that when you’re basically just putting money in paper bags and lighting it on fire, $28 million is just a drop in the bucket.
We’re also pretty sure Alan’s one of those guys with an “Act As If” attitude, since a friend of a friend of a friend told us recently that AM preemptively sent a note to the board of directors expounding on this philosophy. He allegedly went off on a tangent for some time about how “if you want to save this company, I’m going to need some serious clams. I’m talking dollars. Big money, hoooo! You think if I show up in public dressed like a hobo, it’ll convince people that they want to drive a Ford? No, if anything, it’ll bolster their decision to buy one of those, what’s the word, what’s the word, what’s the word—Monopoly cars—a KIA or something. Personally, I drive a Beemer; don’t take that the wrong way, no offense to the brand, but, like I said, I’ve got to act like we’re just rolling in the money, and if we’re getting naked and rolling around on piles of $1,000 bills, that’s got to mean something. Don’t take that the wrong way—that wasn’t an invitation from me asking you guys to get naked and roll around on piles of money with me, or a come on by any means, just an illustration. Anyway, the money—I’m going to need a lot of it. I’m also going to need you to send a few extra-plush robes over to my office for the price of—on the house. ASAP. We’re going to save this company, together. –A.”
Mulally gets $28 mln amid $12 bln Ford loss [Reuters]

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