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Ford (F) lowered CEO Alan Mulally's compensation by 29% to $20.95M in 2012 after the car maker...

Ford (F) lowered CEO Alan Mulally's compensation by 29% to $20.95M in 2012 after the car maker missed its goals for profit, cash flow and market share. Mulally's package was made up of a $2M salary, a $3.95M bonus, and $15M of stocks, options and other compensation. Despite the wage cut, Mulally is still probably the world's best paid automotive CEO.
Comments (13)
  • I thought Jack Nassar was overpaid, wow!!!!!!!!!!!!!
    17 Mar 2013, 06:18 AM Reply Like
  • There is no such thing as an overpaid successful CEO. If he/she grows the business and improves constantly the growth alone will MORE than pay for the compensation.
    17 Mar 2013, 12:21 PM Reply Like
  • Editor, The Lewis Letter,
    Deserves every penny. Malally main reason Ford is in my model portfolio. He is responsible for "bringing back the dead" in new models, strong financials, no government loans, restored credit rating to investment grade, stock appreciation.
    17 Mar 2013, 12:38 PM Reply Like
  • Based on the value of the dollar now days who knows what a fair compensation is for any CEO???????
    17 Mar 2013, 01:23 PM Reply Like
  • there all over payed. how much money does one person need. i would work for three months then retire. damn to do that year after year,you can only buy so much shit.
    17 Mar 2013, 02:01 PM Reply Like
  • Money is only a scorecard to them. Their primary goal is the satisfaction of seeing their plans come to fruition.
    17 Mar 2013, 08:26 PM Reply Like
  • Yes, how much is "fair compensation" for a CEO that saved a company from bankruptcy?


    As a comparison, Lawyers often get anywhere from 25% to 75% of a gross cash settlement in court, while the plaintiffs get whatever is left over the Lawyers finish feasting on the carcass, sucking the marrow right out of the bones. And don't forget taxes.


    So how much would be "fair" for a man or woman who saved a company with around $200B in assets, not to mention its employees and shareholders ? A "tithe" or 10% of the annual "take"? How about 5%? A mere 2%? At least 1%? How much would you ask for, to do the deed?


    So, Alan Mulally got $20.95 million in 2012. That was about 0.0156% of Ford's revenues, or about 0.263% of earnings before taxes, or 0.374% of the after tax earnings.


    That would be starvation wages for a typical bloodsucking lawyer.
    17 Mar 2013, 02:02 PM Reply Like
  • That's right. Mulally saved the brand and kept the company in the Ford family against all odds, amid perhaps the worst economic downturn since the Depression. If anything, the guy's underpaid, and if you notice it's mostly in stock options of common shares, not fat cash bonuses -- therefore, what's good for him is good for the smaller shareholder.


    I'm a Ford investor in large part because of Mulally; whatever a company's problems might be, great leadership is always a good bet.
    17 Mar 2013, 02:45 PM Reply Like
  • I have all the risk with F and don't get any real Perks ! Something is wrong with the fact that as an owner I take all the risks this guy walks away with millions of our money. He is an employee and gets free stocks ! ?????? Please, if you can justify this logic then don't try to explain it because I really don't what to hear it.
    17 Mar 2013, 04:32 PM Reply Like
  • Tank Head - Really? Then why do you ask? Just sounding off to hear yourself? Is ignorance and hate considered to be a virtue with you?


    In a competitive capitalistic (ie: non-socialist-communist Marxist-Leninist) society, wages are determined by competition for talented workers, even at the top levels, especially at the top levels.


    You can bet your Band of Brothers' lives that there are any number of businesses, literally hundreds if not thousands, of companies in the US and abroad, who would gladly, no, gleefully pay Alan Mulally $20M plus to leave Ford and come rescue them. GM's Board would snap him up in a blink of an eye, if the US Treasury would permit it.


    Ford has a very sincere interest in keeping Alan Mulally on board and at the helm with a strong arm and steady hand. They will pay him just enough to keep him aboard the ship. Today, that is just under $21M. Small potatoes.


    By the way, Alan Mulally owns millions of shares, with options to purchase millions more - he has the same risk as you, multiplied by a million or so. That's right - he buys his stock options, and must sell some to pay the taxes on the gains.


    But yea, you don't want to hear logic. We understand. Rest yourself, soldier, and thank you for your service.
    17 Mar 2013, 05:23 PM Reply Like
  • You are right no explanation needed. Sell your stock.
    17 Mar 2013, 05:32 PM Reply Like
  • Question: Let us assume you are worth one million dollars. A man saves your life. How much of your one million does he deserve?
    17 Mar 2013, 04:35 PM Reply Like
  • As much as if you were worthless.
    17 Mar 2013, 08:29 PM Reply Like
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