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.