Remember that big bonus that Ford Motor Company handed out to all of its hourly employees? Well CEO Alan Mulally was sure not to leave himself without a little something extra for the year either.
Detailed within a filling to securities regulators was the news that Ford, which lost $2.7 billion in 2007, awarded Mulally with restricted stock worth $4.1 million, along with 3.56 million stock options at an excise price of $6.14. The bonus does seem to be in line with the spirit in which the much more humble hourly items was awarded; Mulally had said that the bonuses were a result of Ford’s turning the corner toward profitability in the near future.
Mulally came on as Ford’s CEO in the late part of 2006 from Boeing, and was paid $37.5 million during his first 14 months on the job. Ford stock, which has plummeted by 80 percent since 2000, has fallen 30 percent since Mulally took the helm at The Blue Oval.
+ Automotive News: Mulally paid $4.1 million in stock (subscription may be required)
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Hey Mulally here’s a novel concept - why don’t you reward yourself AFTER you’ve returned to profitability? Of course perhaps he really never sees that happening and wanted to go ahead and get some while he could. After all he’s already driven the stock down 30% from when he started. What’s several million when your company lost almost three BILLION in a year?
I suppose Alan could argue that at lease he did not lose more than thirty nine BILLION in one year like his cross town rivals did.
Rather than worry about his pay maybe he should worry about what will make cunsumers happy and willing to buy Ford products again. Boring SUV’s and leftover architectures are not the way forward.
Look at their financial statements before you throw stones. The company netted $11 billion in cash after paying for capital expenditures. They’re still showing a net loss on their income statement because their taking more non-cash charges to goose the reported earnings in 2008.
And those options are worth way more than their strike price. It’s too bad the company didn’t pay him in cash.
Once again, Ford should focus on the products customers want and not play games with their numbers. There is no stone throwing involved, I just wish they would deliver products that are not based on antiquated technology such as the Focus, and Ranger. Additionally they have two divisions on life support that have needed a complete range of products for years, either cut off the life support or give them a transplant. Anyone on this website can name at least three product Ford sells elsewhere that should be here. If Mazda can sell the updated 3 then why can’t Ford sell the same platform under the Focus? They abandoned the large RWD fleet market (police cars, taxis, and limos) when the Australian architecture that underpins the Falcon could have been converted to US specs and produced here. Why? Because all those things cost money and they can’t afford it because they are worried about the bottom line. You do actually have to invest in new products to sell new products otherwise you eventually become irrelevant.
[…] Ford expects that the 63-year-old Mulally will be around to lead them into the early part of the next decade, the company is said to maintain […]
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