Monday, April 09, 2007

CEO Profits From Ford Failure

Once again a CEO makes off with filthy lucre while the company collapses. Though some speculate that he may have been rewarded for saving Bush.
Since he did nothing that saved jobs at Ford.

Ford CEO: $28M for 4 months work
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. 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."

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.


Zero Sum Gain



Stock Options
Corporate Crime

White Collar Crime

Criminal Capitalism



Find blog posts, photos, events and more off-site about:
, , , , , , , , ,

, , , , , ,
, , , , , , , ,

No comments: