Ford CEO Alan Mulally Banks $13.6m in 2008, Flies in Private Jets

Robert Farago
by Robert Farago
ford ceo alan mulally banks 13 6m in 2008 flies in private jets

The dilemma: should the MSM and autoblogosphere highlight the fact that FoMoCo CEO Alan Mulally earned $13.6 million in 2008, a year where the automaker’s sales cratered and their profits evaporated, or should they focus on the fact that the number represents a 37 percent cut from his previous take-home? The Detroit News headline splits the difference: “Mulally’s pay cut; still gets $13.6M.” Maybe someone should point out that Big Al’s compensation was front-loaded; he banked $28.2M in the first four months of his employ. OK, now, Mulally’s 2008 pay and financial future isn’t quite as . . . bounteous these days.

Most of that — $8.7 million — represents stock options that are worthless at the current share price. The automaker said Mulally has yet to receive any stock options that he could cash. Ford said it will reduce Mulally’s salary by another 30 percent for 2009 and 2010, and eliminate merit pay increases and bonuses for U.S. salaried workers because of the challenges facing the company and the auto industry.

So the only real question here: how did the DetN find a UAW member who thinks Mulally’s salary hit puts him in the same boat as a line worker? “He’s sharing the burden with us — and I think it’s about time,” said James Vanderbeke, a worker at Ford’s Dearborn Engine Plant. “It’s a good feeling to know that they’re doing their share.”

Oh, I forgot: Big Al and Bill Ford are still flying around on corporate jets. Chartered. Reuters reports the savings.

The automaker valued Mulally’s compensation for personal use of company and private aircraft in 2008 at $344,109, less than half the $752,203 the prior year.

The automaker also said Mulally’s family will be allowed to accompany him on trips when he flies on private aircraft and the company will pay the cost of coach-class commercial flights for his family when the travel is at his request.

Join the conversation
2 of 18 comments
  • Quasimondo Quasimondo on Mar 25, 2009

    Alan Mulally didn't dig his spoon into the bailout bowl, so why should we be concerned? It's certainly not our tax dollars that is being spent on his paycheck or corporate jet.

  • Jurisb Jurisb on Mar 26, 2009

    Is that the Blueberry` new phone in the guy`s hand? the one with the biggest gaps around buttons of any 2008 or 09 cellphone models in production? yepp.

  • Tassos those 90s pathetic orange pixels are inexcusably lame in a 2010.The interior is filled with Grey Rubbermaid plastic and the tiny sliver of real or fake wood is an utterly pathetic attempt to pretend it's upscale (don't even THINK of "Luxury")Merc SLs with similar metal retractable roofs look so much better inside and out.Regardless of what you paid for this way undepowered near-luxury pretend-sports car, you would have done so much better with a PORSCHE BOXSTER...
  • Dukeisduke That's a cool picture (the one under the bridge) - where was it taken? Google Image Search doesn't turn up any matches.
  • Dukeisduke Okay, yeah, they should fix this, but, "URGENT: DO NOT DRIVE THIS VEHICLE"? I think we're reaching Peak Idiocracy.
  • MaintenanceCosts This is a great review, and very accurate from my perspective as the owner of a closely related, but longer and taller, E93 335i convertible. So much in this review is familiar. Here are the things that are a bit different about the 335i:[list][*]My car is a manual. Shifter action is good, with positive engagement, although a bit more play and rubbery feeling in the shifter than you would get with, say, a six-speed Honda. The clutch is a bit disappointing. It has a "clutch dampening valve" intended to protect against the most abusive clutch dumps. The valve throws my timing off a bit and I have had a hard time learning to drive this car with perfect smoothness, especially in the 1-2 shift. I may remove the valve at some point.[/*][*]My car has the turbo (in single-turbo N55 form). On the plus side, you get what feels like significantly more power than the rated 300 hp once on the boost, and even in fully stock form you get entertaining whooshing noises from the blowoff valve. On the minus side, there is some turbo lag, more than you get in many modern turbo cars, and fuel economy is, well, not close to what Corey is getting. The turbo car also comes with an active exhaust system that is extremely quiet when puttering while making some nice inline-six noise at wide-open throttle.[/*][*]There are back seats! I have a nine-year-old and a six-year-old. The six-year-old fits perfectly. The nine-year-old still fits, but that will likely change within the next three years. These seats are not usable for adults unless the front-seat occupants squeeze forward more than normal. E92 coupes are slightly roomier in back, and E90 sedans are substantially roomier.[/*][*]My car has the M Sport suspension, which does not have variable dampers. It's firm enough that I have to be careful to avoid even small holes on city streets if I don't want to get jarred. But if you can avoid the holes it feels good, navigating expansion joints and such without uncomfortable impact, while maintaining impressive body control for a porky 3900-pound convertible.[/*][*]My car has iDrive and a screen, as well as parking sensors. But it does not have a backup camera. Graphics on the screen are pretty good by 2011 standards, which is to say not acceptable by modern standards, but the system is easy enough to navigate and works pretty well. I prefer the rotary controller to a touch screen for fingerprint reasons.[/*][*]The parking sensors are by far the best of any car I've ever owned, and they are so accurate I really don't need a camera. The sensors go to a solid beep when the appropriate end is about 4" from an object, and I can comfortably cover about half that distance with no fear of bumping. They also project legimately useful graphics on the iDrive screen showing where the object is. I park in tight city settings enough that I really appreciate the accuracy. Also in the city parking mold, my car has power folding mirrors, which I wish every car would.[/*][*]Like you, I have the mid-level "Hi-Fi Professional" stereo setup, but in the four-seat convertible there is not a dedicated subwoofer. Bass is a bit on the weak side. Sound quality is about comparable with the JBL system in my Toyota Highlander, which is to say it's good enough for listening in the car but is not going to impress anyone.[/*][*]There are small leaks from the joints between the top and the A-pillars in my car. They won't soak the interior, but they will result in a few drops of water on the front seats after a hard rain. I'm still experimenting to see if regular applications of rubber protectant can restore the seals enough to eliminate the leaks. There are no leaks from any other part of the top mechanism.[/*][*]I've only owned the car for about eight months and 1500 miles, but so far nothing has broken and every feature on the car works correctly. A purchase-time inspection found only an incorrectly secured fan shroud and no other problems, and there is a mostly complete service history, so this was a well-maintained car to start with.[/*][/list]
  • Lou_BC This offer reminds me of those plans where you get something free but if you fail to cancel prior to the expiry of the "Free" plan you end up on the hook for a lengthy contract. Tesla wants to attract people to their electrical company. It's smart. Make money selling the car, make money with subscription services on the car, and make money selling the fuel to power the car at home and at charging stations.