By on March 22, 2010

The Detroit Free Press reports that Ford’s Alan Mulally made $12.8m last year, nearly double the $7.53m he made in 2008. Despite a considerable increase in Mulally’s overall compensation, his cash salary actually declined to $1.4m, from about $2m in 2008. In addition to the $12.85m he made in salary, bonuses and other compensation, Mulally banked a further $5.05m in stock options. Chairman Bill Ford Jr. continues to work without compensation, although he continues to accrue stock options worth $16.8m. Those options can not be exercised until the firm’s auto operations are profitable. And while Ford’s 2009 profits justify big executive payouts, federal pay czar Ken Feinberg has cut back on executive compensation at bailed-out automakers GM and Chrysler.

Fourteen GM executives received base salaries of over $500k in 2009, reports Reuters, but that number is coming down. Feinberg tells reporters:

In General Motors, there will be some people that the company has convinced me should be receiving compensation in excess of $500,000 in base cash salary, there will be some of them…[but] this year we have cut back

Chrysler and Chrysler Financial might also have executives making as much as half a million dollars, but, says Feinberg, GMAC won’t. The troubled auto and mortgage lender has come under fire from congress in recent days, as its bailout has been subjected to withering criticism from the Congressional TARP Oversight Panel.

GM Chairman/CEO Ed Whitacre is on track to make $1.7m this year, along with $7.3m in stock-related compensation, as his pay package has already been approved by Feinberg. Also already-approved is GM Senior Advisor Steve Girsky’s $1.1m compensation package. Chrysler CEO Sergio Marchionne is paid by Fiat, meaning his primary compensation is not subject to Feinberg’s rulings. He made $600k in Feinberg-approved stock options last year (which cannot be cashed in for three years), but his Fiat compensation totaled $6.5m (€4.8m) according to Bloomberg.

Feinberg’s final pay rulings will be released tomorrow.

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13 Comments on “Detroit Compensation Report: Mulally Made $12.8m, GM and Chrysler Cut Back...”


  • avatar
    Steven02

    One thing to mention as well from the article. Last year, Mulally made $9.44m in stock options. So things are going well for him, but compensation isn’t that different this year from last, but there are risks in having more stock options than salary and bonuses.

    But one quote from the article got me…

    “I’ll admit that it appears everything he touches turns to gold,” Nick Kottalis, president and chairman of UAW Local 600’s Dearborn Truck unit, said Sunday. “But it is the workers’ dedication and commitment to this company that has brought Ford back on this major rebound.”

    Say what? Mulally has turned the company around. His plans have put Ford into the best position of the big 3 when 2 of the big 3 were going bankrupt. I am sorry, but the UAW guy is a bit delusional if he wants to give credit of this success to the dedication and commitment of Ford’s workers that made this happen.

    • 0 avatar
      Z72_Silvy

      Mulally has NOT turned the company around. I don’t see how he’s entitled to any more than $85k / year.

      As my esteemed colleague Z71_Silvy has so many times mentioned, Ford’s debt is the worst in the industry, pays a higher interest rate on that debt than anyone in the industry. It has only worsened during Mulally’s time. TTAC will start Ford’s death watch in June as the company crumbles under the weight of its own debt.

      Mulally isn’t leading the company, he’s just a puppet for Bill “clueless” Ford to keep running (er, ruining) the company Bill’s way.

      Ford has no direction. From top to bottom, or bottom to top, their complete product line is bland, boring, confusing, and in most cases horrific. They can’t even get a small car (Fiesta) out in the time frame they promised. After the Fiesta, they are what, 3 years from any new introduction? Chrysler has more new vehicles in development than Ford.

      Car for car, segment for segment, GM outsells Ford. In every measurable qualifier, GM is better than Ford. You name the qualifier, and GM beats Ford. Every. Single. Time.

      It’s pretty bad when a base V6 bone-stock automatic Camaro right off the dealer’s lot drives to the drag strip and edges a Shelby GT500 Mustang. Embarrassing for Ford.

      Mr. Lutz is absolutely correct. There’s a big perception gap. But he should have named it a perception inversion. GM is with Whitacre’s lead, building the best cars and trucks the world has ever seen. That’s not to say GM doesn’t have room for improvement, but when they reach Whitacre’s goal, don’t be surprised to see a GM bumper to bumper 250k mile warranty.

    • 0 avatar
      Monty

      Z72, Z71, P71, whichever your identity is:

      http://www.canadiandriver.com/forum/index.php/topic,49080.200.html

      Here’s a link. U.S. sales for February 2010: Ford 142,006 units GM (including the 4 dead brands walking) 141,535 units.

      Here’s the first qualifier to disprove your point: Focus versus Cobalt. I have test driven both within the last month. Cobalt is a fail compared to the Focus. In fact, my wife’s almost 5 year old Focus bested a brand new Cobalt in every single category.

      Fiesta versus Aveo. Really? Do you really want to claim the Aveo will best the Fiesta?

      Impala versus Taurus. Test drove a Taurus this past weekend, versus a one year old Impala owned by a friend that I had borrowed several months ago. I’ll give the Impala the win on interior space; in every other category the Taurus was impressive in outdoing the Impala.

      Next qualifier: Hybrid technology. I wanted to compare Ford versus GM hybrid technology…oh yeah, that’s right. GM doesn’t have any hybrid technology.

      New and upcoming products: Ford – Transit Connect, Taurus, Fiesta, Focus, Explorer, Escape replacement, refreshed Edge.

      New and upcoming products: GM – All I can find so far is the Cruze, the Volt and the Regal for upcoming products. GM did launch or refresh: the Terrain/Equinox twins, the CTS Sportwagon, and the SRX. Have I missed anything else?

      Also, can you please provide a link for this:

      “It’s pretty bad when a base V6 bone-stock automatic Camaro right off the dealer’s lot drives to the drag strip and edges a Shelby GT500 Mustang. Embarrassing for Ford.”

      Also, can you provide independent verification of this:

      “GM is with Whitacre’s lead, building the best cars and trucks the world has ever seen.”

    • 0 avatar
      Ion

      I’m sorry but your “esteemed colleague”? Thank you for the chuckle it’s been a bland day. Either they banned you again or you’re badly attempting to make yourself a sockpuppet.

    • 0 avatar
      Loser

      This Z72 post can’t be real, it must be a joke. P71/Z71 may be far out on some things but he’s not this delusional.

    • 0 avatar
      Z71_Silvy

      “Z72_Silvy” This can’t be good…….

      Although…as the old saying goes imitation is the highest form of praise…even if it’s completely wrong (<– ok…I added that last part).

      "Loser" nailed it…it's not me…just someone with way too much time on their hands. It was good for a laugh though.

  • avatar
    wsn

    +1

    Is he implying that the UAW workers have no dedication and commitment to GM and Chrysler?

    A.M. is seriously underpaid, as relative to executives of other large companies.

  • avatar

    Mulally is making exactly the right amount IMHO… but Whitless would be embarassingly overpaid at $25K, let alone $1.7 mil.

    Put me in, coach — I could shuffle management around for no apparent reason, too! And I probably know enough about the industry to not need to rely on Fritzie’s advice.

  • avatar
    Telegraph Road

    To put this in perspective, the Detroit Lions paid three players (Raiola, Cherilus, and Peterson) a combined $21.5 million in 2009. I think the Ford family got a better return from Mulally.

  • avatar
    trk2

    How about $13 vs $49,900

    Alan Mullaly vs GM’s bailout, in millions of dollars.

  • avatar
    GarbageMotorsCo.

    Good thing about Mullally tho is he is getting money because he is doing a good job whereas Government Motors got money out of mixture of hysteria, sensationalism and pity. At least Mullally has a chance to build Ford up again.

    GM will be back sucking on the government teet until the thing is so dry it looks like a flab of skin dragging on the floor.

    And the doors will finally be closed for good.


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