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Ford CEOs Forced To Take Private Flights. Also: Pay Cuts.

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Alan Mulally

Alan Mulally

Bill Ford Jr

Bill Ford Jr

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It's a good news/bad news kind of day for Ford execs--specifically Chairman Bill Ford and CEO Alan Mulally.

First, the bad news: executive take-home pay is shrinking. According to a filing with the Securities and Exchange Commission, Mulally earned a whopping $21.7 million in 2007, including stock options; in 2008, the total was closer to $13.6 million. That's a nearly $10 million hit. Further down the totem pole, Executive Vice President/CFO Lewis Booth's salary rang in at $1.8 million (not including stock options), which is about $3.3 million below his 2007 figure. TCC staffers tend to laugh in the face of such ridonkulousness, but we're sure those stats seem grisly to the country club set.

Now, the good news: both Mulally and Ford will still be forced to take private jets.  Citing security and business concerns, Ford says the requirement will "'maximize' the time the executives have available for company business." Which makes sense because, really, how much work can anyone  accomplish surrounded by B-list celebs in the first class cabin of a garden-variety commercial airliner?

Bonus fun fact: one of Ford's preferred charter airlines in 2008 was Pentastar Aviation, owned by Ford Director Edsel Ford II. Yes: Pentastar. Conspiracy theorists, it's your time to shine.

[sources: AutoNews sub req'd;  Freep]

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Comments (2)
  1. "Salaries Still High"

    These salaries need to be slashed more. These executives were paid a lot of cash in the past when the company was rolling up huge losses. The salaries need to be more like those surrounding the performance of real estate agents or car salespeople -- especially the latter, since that is what they are glorified car salespeople. However, they are paid and act like princes and princesses. Their bad decisions should not have been rewarded in the past. Since these guys are considered experts, they should make big money if the company makes money. Ford is starting to not follow the Detroit pack, which is a good sign and attempting to deliver the goods. However, there is still a ways to go such as allowing the building of Volvos in underutilized Ford plants in the USA to enable them to be more profitable, installing three rear seat headrests in all vehicles, offering fuel efficient four cylinder turbodiesel engines (including twin turbos) in all car and truck lines (i.e., Ford, Lincoln, Mercury, Volvo, and Mazda) in the USA, reducing car and truck weight, improving car and truck drag coefficients to .30 or below, and installing locking fuel filler doors. For a number of these items, you would think that a guy who ran an manufacturing company would see their benefits.
     
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  2. "Salaries immoral"

    I'm a lucky person. I've been employed in good jobs since I graduated from engineering school 27 years ago. I also had an opportunity to achieve my graduate degree. I work hard and can say the work I do truly makes the world a better place. That said I'll work my entire career and cumulatively not make close to the 1 year pay cut Mulally had last year. Again, I'm not complaining about my situation, I'm a lucky one, but how can anyone justify annual compensation like the auto top execs in profitable times much less money loosing times. Is Alan Mulally that valuable? I know cars. I know marketing. I'll do the job for a mere million. I fly commercial to boot.
     
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