Ford CEO gets $56.5 million

MadJack

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<b>Tuesday, March 08 2011 8:42 AM, EST</b><br><hr color="Black"><br><font face="arial" size="4"><b>Ford
CEO Mulally gets $56.5M in stock award</b></font><br><font face="arial" size="3"><br><b>Associated
Press, The</b>   <b>"AP Financial News"</b></font><block>

<p>
<location idsrc="xmltag.org" value="LU/us.mi.deaorn">
DEARBORN, Mich.</location> -- <org idsrc="xmltag.org" value="NYSE:F">Ford
Motor Co.</org> has rewarded CEO <person>Alan Mulally</person> with
stock worth <money>$56.5 million</money> before taxes.
</p>
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<p>
Executive Chairman <person>Bill Ford Jr.</person>, the man who hired
Mulally, got stock worth <money>$42.4 million</money>.
</p>
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<p>
The <location idsrc="xmltag.org" value="LU/us.mi.deaorn">Dearborn,
Michigan</location>, company disclosed the awards in filings Monday with
the <org>Securities and Exchange Commission</org>. Shares were granted
on Thursday.
</p>
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<p>
Ford was in financial peril when Mulally took over in 2006. It mortgaged
assets to borrow more than <money>$23 billion</money> and was able to
avoid bankruptcy.
</p>
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<p>
Last year the company made <money>$6.6 billion</money>, its best year
since 1999. Sales last year rose almost 20 percent.
</p>
<br>


<p>
Mulally paid <money>$23 million</money> to taxes, while <person>Bill Ford</person>
paid <money>$17 million</money> in taxes.
</p>
<br>


<p>
Both men also got options to buy stock at <money>$14.76</money> per
share. That's higher than Monday's closing price of <money>$14.01</money>.
</p>
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S

ssd

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hmmm....

says in the article:
Mulally paid $23 million to taxes, while Bill Ford
paid $17 million in taxes.

It also says:
Ford was in financial peril when Mulally took over in 2006. It mortgaged
assets to borrow more than $23 billion and was able to
avoid bankruptcy.

I do not begrudge the guy and applaud him. Isn't that what America is about? Trying to succeed? Ford DID NOT take a gov't bailout like the other US Auto makers.

And honestly, paying $23 million in taxes - holy crap! Regardless if you are rich or poor, Michigan should like that! (I hope someday I get a tax bill like that!)

So now what happens?

It pisses consumers off and they 1. Quit buying Ford automobiles and 2. Investors stop investing in Ford and Ford's profitability drops and Mullally and Ford do not receive bonuses
or
The consumer thinks it's a great success story and Ford has decent automobiles and they 1. continue to buy Ford products and 2. Continue to invest in Ford.....

(or somewhere in between)

Time will tell......
 
T

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I wonder hoow much Ford would have made if Obama didn't have that little program lots of Americans jumped into about a year ago. Im willing to bet this is where Ford got those biig sales numbers not something these guys did. Could be wrong. Just a thought
 
Cie

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The Sponge said:
I wonder hoow much Ford would have made if Obama didn't have that little program lots of Americans jumped into about a year ago. Im willing to bet this is where Ford got those biig sales numbers not something these guys did. Could be wrong. Just a thought
Click to expand...

Could be, sponge.



Based on the information provided, I see nothing wrong with the bonuses received and taxes paid by either man, although I would prefer increased taxes on this level of income.
 
BobbyBlueChip

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ssd said:
And honestly, paying $23 million in taxes - holy crap! Regardless if you are rich or poor, Michigan should like that! (I hope someday I get a tax bill like that!)
.....
Click to expand...

Why would Michigan care about how much he pays in federal taxes? Is this more stuff that you get from your enlightened websites
 
StevieD

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I wonder how many cars he would have made without union workers. Or any workers for that matter. This guy, no doubt, added next to nothing to the success except he came along at the right time. The people that work there, you know the ones paying 4 bucks a gallon a gas and their homes in foreclosure, yeah, those guys. They set the company straight. At best, he just didn't screw it up.
 
Trench

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Mulally's done a hell of a job at Ford... but $100 Million to two guys??

The $56.5 Million in stock alone that Mulally got is approx. 1000 times what the average UAW worker makes. I'm not saying the UAW guys are underpaid and I suspect most of those UAW guys at Ford are happy they don't have a CEO that drove the company over the cliff, like Wagoner did at GM. But CEO compensation that's 1000 times (and that's just the stock award) what the average employee's wages are, is problematic nonetheless.
 
T

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When they have their shitty year do they get penalized this much or do they still get bonuses :shrug: :facepalm: You would think they would put this money back into the company and hope to make it more profitable but noooo
 
S

ssd

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Bobby:
The state of Mich will get over $1mil in taxes from Mulally - I can't see how that is a bad thing.

StevieD - Mulally did nothing?

One of Mulally's first decisions at Ford was to bring back the Taurus nameplate. He said that he could not understand why the company previously scrapped the Taurus, which had been one of the company's best sellers until losing ground in the late 1990s.

Mulally took over "The Way Forward" restructuring plan at Ford to turn-around its massive losses and declining market share. Mulally's cost cutting initiatives led to the company's first profitable quarter in two years. Dividends to shareholders were also suspended.]

In 2006, Mulally led the effort for Ford to borrow US$23.6 billion by mortgaging all of Ford's assets. Mulally said that he intended to use the money to finance a major overhaul and provide ?a cushion to protect for a recession or other unexpected event." At the time the loan was interpreted as a sign of desperation, but is now widely credited with stabilizing Ford's financial position, compared to crosstown rivals General Motors and Chrysler, both of whom had gone bankrupt during the Automotive industry crisis of 2008?2009. Ford was the only one of the Detroit Three that did not ask for a government loan. While GM and Chrysler expect to be dramatically downsized as a result of bankruptcy, Ford is poised to emerge as the largest US automaker and shows signs of recovery. In May 2009, Ford chairman William Clay Ford, who hired Mulally, said that "Alan was the right choice [to be CEO], and it gets more right every day".

In 2007, he presided over the sale of Jaguar Cars and Land Rover to Tata Motors, an Indian car and truck manufacturer. Mulally said he had "no regrets" over the sale, preferring to concentrate on the Ford brand, as then-CEO Jacques Nasser was criticized in 2001 for paying too much attention to new overseas acquisitions while letting the main Ford operations in the US decline. Ford received $2.3 billion USD on the sale, considerably below what they paid for it under Nasser. However, analysts said that Ford would have gotten much less or may not have found a buyer if they tried to sell it later in 2008, as Jaguar Land Rover sales subsequently plummeted due to high oil prices in the summer, causing Tata to request a bailout from the British government. Mulally also sold off Aston Martin and Volvo Cars, and reduced Ford's stake in Mazda.

In 2008, amid mounting losses during an economic downturn, Ford announced a proposal on December 2, 2008 to cut Mulally's salary to $1 per year if government loans were received and used by Ford. During hearings for government loans to Ford, he and other industry leaders were criticized for flying to Washington, D.C. in corporate jets. During a subsequent meeting, he traveled from Detroit to Washington by a Ford-built hybrid electric vehicle, while selling all but one of the company's corporate jets.

He lives within three miles of his office at Ford's global headquarters in Dearborn, Michigan, arrives at 5:15 AM every morning, and works for twelve hours.

Sound like this guy did nothing for the turn-around at Ford. No doubt all the line workers, etc pulled their weight and followed the general direction that was set out by Ford execs.

Is Mullally worth his bonus? I have no idea and like I said, the market will decide but overall, it's a great story for the man and the company.

Sponge - he was willing to take $1 a year if they accepted a bailout. Will he return his bonus if they tank? i have no clue but part of his bonus was stock options. If the share price tanks, he will not be redeeming those options I am sure
 
StevieD

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SSD, Were all those things you mention his idea? I think he relied on a team of other people to make those decisions. How much was the CEO who decided to drop the Taurus name paid?

I would also work for a buck a year if I got a 56 million dollar bonus! That's like Billy Joel singing I Will Take You As You Are to Christy Brinkley!

That 56 million is money that will never see it's way back into our economy. If say 36 million was given to the employees as a bonus then that money would see it's way back into the economy.
That is the problem with the redistrubution of wealth that has been happening for last 10 years or so.

What's wrong with 20 million? Tom Brady can live on it. Granted his wife has to work but I think if he can make way with 20 million than so can this guy.
 
S

ssd

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StevieD:
at least $24 million will make it back into the economy in some way shape or form as that is his minimum tax bill.

I also believe - my opinion - no facts or links - that the rich do spend their money....it is one reason I am in favor of a flat tax AND a VAT tax that would be for luxury items - in that way, everyone pays essentially the same tax for the same rights but the rich would pay more based on their expenditures.

I also do think that both GM and Ford did some type of a profit-sharing plan this past year with the workers - I am not sure the amount nor the # of employees who received the bonus.
 
StevieD

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SSD
Don't you realize how absurd this amount of money is? This is exactly what is crippling the American Economy. This guy no more deserves 56 million than Tom Brady deserves $20 million a year. Even with his Super Bowls and add on 4 more if you want $20 million would be good for his career. Not a year. Unless you don't mind paying 10 bucks a beer and $75 to park. It is insane.
 
S

ssd

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Stevie:
I think it is an insane amount of money. But, my opinion in this does not really matter. Ford, their stockholders and the consuming public will make the call.

I find it absurd that the NFL owners and NFLPA are arguing over BILLIONS. My way of showing my displeasure - I do not go to games or buy merchandise.

It is all unsustainable in my eyes.
 
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