#Mulally

The situation in Europe is “very volatile”, Ford CEO Alan Mulally told Reuters today in Berlin. “We don’t know whether it the European economy will stabilize or hit bottom or not because it’s continuing to decrease.”

Observers knew that something was in the bush when Ford scheduled a conference call for today 9 a.m. Eastern. Hosted by Ford CEO Alan Mulally and Executive Chairman Bill Ford Jr., the call promised to be about more than October sales. It was about Ford’s future CEO.

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.

I’ve said it before, I’ll say it again: if you want proof that Ford’s water-walking CEO doesn’t “get” automotive branding, look at Lincoln. The Blue Oval Boyz’ upmarket marque is in total disarray. Lincoln lacks anything approaching an effective brand proposition; it’s burning through tag lines almost as quickly and ineffectively as the industry standard for pitiful performance (Buick). Does it even matter? Lincoln’s line of lackluster products simply aren’t good enough to make it in The Bigs. And then there’s the Medusa-class disaster known as the MKT: a poorly-built, misbegotten machine constructed on Big Al’s watch. Automotive News [sub] deployed no less than three writers to talk to Mulally about languid old Lincoln, AND they spotted him the lazy journalist’s and persnickety PR person’s best friend: the Q&A format. Even so, the result is an extraordinary non-outburst from an executive who believes that combining Ford and Lincoln Mercury dealers is a good thing. Check out this exchange: