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Phil LeBeau doesn't think Ford (F +1.3%) investors should stress out over the $58M in stock...

Phil LeBeau doesn't think Ford (F +1.3%) investors should stress out over the $58M in stock awarded to CEO Alan Mulally as part of his compensation package given his contribution to the automaker socking out record profits in 2010 and 2011. Ford's share price has soared 650% since the options were granted in 2009. (video)
Comments (3)
  • I AM OR WAS A DETROITER, BEING A STOCK HOLDER IN FORD, I KEEP WONDERING, "DID'NT HE HAVE A SALARY? NO PERSON IS WORTH THAT MUCH WHEN ALL THERY WERE DOING IS "THEIR JOB"
    7 Mar 2012, 12:34 PM Reply Like
  • Last autumn, the UAW leadership made a lot of hay over what they called the "immoral" total compensation package given to Alan Mulally. This in spite of the general consensus that his presence at the helm successfully guided Ford out of the ditch and back on the road to prosperity, deftly avoiding bankruptcy and probable liquidation or forced-merging and takeover by foreign entities (eg: FiatChrysler).

     

    The UAW saw the stock option awards as Ford stealing money from the Union workers on the line and giving it to "management".

     

    Ah - what fools these mortals be.

     

    The fact of the matter is, and what they don't seem to understand is, that when Ford gives out stock options (essentially wooden nickles) as part of the overall executive compensation package, it is not cash money coming from Ford's cash on hand, from where the UAW salaries are paid.

     

    It is essentially the stock shareholders who are buying new shares that pay the price in buying up those wooden nickle stock options, with their own cash money. The stockholders pay for Mulally's stock options, not the UAW. And (mostly) they do so willingly...
    7 Mar 2012, 07:59 PM Reply Like
  • But OK - So - what do you propose to pay a man who indisputably saved an annual $100B global company from utter bankruptcy and liquidation for pennies on the dollar? Thus saving maybe 100,000 union jobs from unemployment poverty, and possibly an entire nation from collapsing into an even deeper recession? Or avoiding stealing many tens of billions more from the taxpayers to rescue a hopeless business model.

     

    How about a mere fly speck of one percent of the value that he produced? That would be worth billions.

     

    But no! Ford got away with paying him only a few million in cash. The rest is on stockholders and speculators, who ultimately decide how much money Alan will collect on those free stock options, by buying to raise the payout price, or selling to drop it.

     

    You do understand how stock options work, right?
    7 Mar 2012, 08:11 PM Reply Like
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