Ford Pays CEO Mulally $4.1m in Stock. And Then Some.
Not to be outdone by GM CEO Rick Wagoner's $2.2m salary re-raise, 165,563 shares, 500k stock options and 75k restricted stock units; FoMoCo has just paid CEO Alan Mulally $4m in Blue Oval stock and $3.56m worth of stock options. (That is, of course, on top of Mulally's $2m base salary and the $35m in compensation Ford's paid their CEO for his first 14 months of service). As Automotive News [sub] reports, the former Boeing executive's new compensation package comes hot on the heels of his employer's $2.7b '07 loss. More to the point (if not for shareholders), the gravy train rumbling through Dearborn could anger Ford's union workforce looking at buyouts, buydowns and piss-offs. Or not. Coincidentally enough, Mulally's bonanza comes just two days after Big Al announced a $1k bonus for all Ford's United Auto Workers (UAW) members. And the fact that the announcement is hitting the wires on the weekend? More uninvited serendipity, surely. Bottom line: the bottom line has no relation to Motown executive pay.
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Quote: "UAW workers suffer from a nearly unmatched sense of entitlement." Seems to me the sense of entitlement is far more exaggerated at the executive and boardroom levels.
It was reported in the Canadian Press that the $1000.00 bonus would be paid to all Ford Workers in Canada too and not just the UAW people!
This is not free market capitalism. In a free market, the person paying would be making the decision on CEO compensation based on his value to the company. In reality, these decisions are being made by people who may not have even bought the stock. The stockholders have become too far removed from the process, just like healthcare, just like Congress.
Quote: “UAW workers suffer from a nearly unmatched sense of entitlement.” Seems to me the sense of entitlement is far more exaggerated at the executive and boardroom levels. LLC has got this right.