Ford CEO offers to work for $1 a year

[RamboLiberal]

Source: MSNBC

WASHINGTON - Ford Motor Co. CEO Alan Mulally says he'll work for $1 per year if the automaker has to take any government loan money.

The plan Ford is presenting to Congress this week also says it will cancel all management employees' 2009 bonuses and will not pay any merit increases for its North American salaried employees next year.

Detroit's automakers, making a second bid for $25 billion in funding, are presenting Congress with plans Tuesday to restructure their ailing companies and provide assurances that the funding will help them survive and thrive.

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Mulally said in an interview Tuesday that Ford will emphasize its cost cutting efforts with the United Auto Workers union and will give much more detail to Congress than it did during a visit earlier this month.

The company also will accelerate plans to roll out electric cars as part of the plan it will present to Congress this week.



Read more: http://www.msnbc.msn.com/id/28012984/

---

It's a start.

[dkf]

1. Good for him.

Any entity that takes Govt money should have their top management do the same.

[Spouting Horn]

15. "Government money"

is Taxpayer money.

I simply can't grasp the concept of taking money away from people and businesses who make prudent and wise decisions (that lead to a profit) to give to company's who make poor and risky decisions (which lead to losses).

It's fundamentally unfair.

[dkf]

18. We are trying to stave off depression, not save these jokers

[Spouting Horn]

21. And how is giving Big Business

a blank check going to stave off a depression??

What is Ford/GM/Chrysler going to do once they burn through the bailout money?

Get another bailout? When does it end?

[dkf]

22. Ford says if they get a bridge loan they should be OK by 2011.

Stocks advance on reassuring comments from Ford CEO; investors await November sales

NEW YORK (AP) -- A stock market reassured by Ford Motor Co.'s assessment of its financial health bounced back Tuesday, regaining some of the ground lost in the previous session's huge drop. The Dow Jones industrials rose 180 points, regaining more than a quarter of Monday's nearly 680-point plunge.

http://biz.yahoo.com/ap/081202/wall_street.html

The Autoworkers are getting together to help the Auto Cos survive. That should help too.

http://biz.yahoo.com/ap/081202/united_auto_workers_meeting.html

[Political Heretic]

54. You're all missing the point.

The issue isn't that we (taxpayers) might have have any choice but to, for the good of the country, bail out Detroit.

However, Detroit failed and their failure was forseeable and preventable. They have mismanaged their business for years, and refused to adapt to changing conditions and needs. "Bailout" should not equal "handout."

These companies, by having to ask Congress for a bailout of their own crap, forfeit the right to expect money to be given to them without explicit terms.

I'm happy to loan Detroit many billions of dollars to help it survive, however it will meet new fuel efficiency goals, it will transfer x percent of its production into hybrid creation, it will cap its executive salaries at x% above what its lowest paid line worker makes and it will continue to do this for as long as it is using tax payer money.

That's a fair deal.

What I can't stand is the handout mentality of Congress right now. The 700 billion dollar bailout has been blown, banks are doing what they are supposed to do with the money, there's little to no accountability and there were not stipulations... it was just a gigantic handout, not a "bailout."

This is the same thing.

[JDPriestly]

37. You are right, Spouting Horn, but life just is not fair. It's all unfair.

And the most unfair thing of all is that someday we all die. So, we have to accept a lot of unfairness. We can aim for as much fairness as possible. That's the best we will get.

It isn't fair to throw auto workers on the streets either. We are all in this together in the end, so we have to help each other out. I expect the auto workers to help out their neighbors in need if their neighbors help them keep their jobs and their industry.

[YOY]

2. Good. Move smart Mr. Mulally. First mover wins.

Take a personal hit in the gut if you must but move smart.

You will be seen as a savior.

[trotsky]

3. This is a wise move by Ford. n/t

[Sebass1271]

4. how wil lhe support himself and family with $1 a year?

[PassingFair]

5. Are you joking?

He has made millions. He probably has some savings....

:eyes:

[Sebass1271]

9. I am sure he has millions.. i just couldn't believe he will do

something like that.. how about if he gets a working class family salary so he can feel what we feel? I wouldn't want the guy to not get paid a decent salary either..

Maybe iam jut too naive...

[Bake]

13. He could give back his (former) salary and not feel what we feel.

The rich are not like everyone else.

Bake

[AllHereTruth]

19. @Sebass

I think he'll be OK.

Scenario 1: His 'Salary' is $1$ - in a few months when Ford business picks up Mr. Mulally gets a 'Bonus' check.
Scenario 2: His 'salary' is $1$ - Over the next few months Mr. Mulally gets his 'expenses' paid. Such as restaurants/travel
Scenario 3: Both 1and2 - In about 12 months Mr. Mulally is fired/quits. For his 'hard work' and 'taking one for the team' he is rewarded with a very large sum of $$$$$

[Centered]

55. I seriously doubt it's the same person but....

I remember an episode of Michael Moore's tv show where he would challenge execs of companies to "demonstrate" knowledge in their products. I remember the Challenge to the CEO of IBM was to come and format a floppy disk, the CEO of Marlboro was to "roll a cigarette" and the challenge to the Ford CEO was to change the oil in a Ford.

Only the CEO of Ford accepted the challenge and he took Moore to his home and changed the oil in his own Ford pickup. I don't remember much else but I did think that was very cool. It's probably not the same person but I really thought MM had a great idea with those challenges.

[YOY]

8. He has money saved. Not everyone spends 90%-100% of their earnings.

At a certain point of salary increment you either start buying stupid shit or giving money to mooches (Ala MC Hammer or Corey Feldman) and wind up with nothing when the well runs dry or you start saving your money by investing or simple savings.

He could probably retire now if he wanted to or was force to.

[Deja Q]

24. Not everyone makes $50,000/yr either.

:)

And if nobody bought the works of others, the economy would go *kaboom*.

[YOY]

30. It all depends on the Cost of Living. In all I make more than 50K but the COL

in DC has skyrocketed thanks to the housing boom and the economy.

Rents that were 800/mo years ago are now double that. Houses are still double of what they were 5 years ago.

I'm gonna say Mr. Ceo makes well above 50K though... There is a ceiling in which COL stops and luxury starts and another where luxury stops and saving or wasting begins.

[hendo]

31. However

spending more than you make is not good either.

Part of the reason that the country is in a recession is that people spending more than they make is finally starting to catch up with them.

I just hope the government doesn't have a bailout for all the people who run thier credit cards way up.

[Deja Q]

23. Stock options or existing savings, either of which is still plenty big.

[Control-Z]

38. You're joking

right?

[SammyWinstonJack]

48. Perhaps he has some savings from the 20+million he's made over the past two yrs?

I'm sure the greedy pig will survive.

[wtmusic]

6. He could probably run the company for a few months on his stock options

Let's try that first.

[Phred42]

7. A decade late and a dollar short

So - throw him a fish. He should have come up with that one the first time he went to congress with his hand out.

Fire the bastard and put Iaccoca in charge. I'll kick in a buck.

[Sebass1271]

10. I heard he is also DRIVING instead of flying there...

: )))

[hendo]

32. So, he is going to burn that much more oil?

a public flight would more likely reduce the carbon footprint of the trip.

[amandabeech]

39. He's driving in a Hybrid Escape small SUV.

It's made by Ford and the gov. mileage number is 34 in the city. I can't recall the highway mileage, however. The Hybrid Escape was introduced at the beginning of the 2005 model year, I believe.

He's highlighting Ford's real achievements in hybrid technology.

Not a bad idea, really, from a PR standpoint.

[Robbien]

11. Didn't the man receive over $60M in salary and bonuses over the last two years?

At the last congressional hearing it was suggested he reduce his current salary to a dollar, but he said "No, I'm good".

What a change a few weeks brings.

[Lance_Boyle]

12. He ought to pay back his last 3 years' salary AND bonuses

and then maybe he could be considered for the CEO position. This dollar thing is a gimmick. His bonus will be astronomical. Emphasis on the "ASS."

[primavera]

14. I wonder if he means it

Often salaries are token amongst CEOs anyway - the real compensation comes through stock options, bonuses, debt repayment, zero interest home loans, sometimes with the company even making the actual mortgage payments, reimbursement for childrens' school tuition, and so on and so on.

[L. Coyote]

16. Don't give these failing corps a dime. Give the workes healh care instead

and the cost of American cars will not include paying for the workers health care to the grave.

Like D'oh, eh?

[Burma Jones]

17. Well, given the cost of living in Detroit........that's pretty reasonable

Pardon me if I do not weep for the fellow.....

[MilesColtrane]

20. He was rich before Ford hired him in 2006.

With his signing bonus, he's made at least 20 million dollars in the past 2 years, while driving the company into the ground.

He makes more in capital gains off of investments then most workers make in their entire lifetimes, and now he "nobly" agrees to reduce his salary to one dollar a year while pounding the unions for give backs?

Fuck You Alan Mulally.

[johnlal]

25. Nice grandstanding.

I would like to see him work for a reasonable rate. Maybe double or triple what a guy on the assembly line makes. That's enough for me. I don't need to see him flog himself publicly.

I wonder if all of the other executives at Ford are going to follow his lead?

[RamboLiberal]

26. Just heard on radio that all 3 will take $1 salaries

At least they seem to have gotten the message. IMHO since we bailed out Wall Street which didn't seem to learn any hubris from it, it would be a crime to not give the 3 American auto companies one last opportunity. Do it for the blue collar workers.

[johnlal]

27. I guess they'll have to double their speaking engagements. n/t

[florida08]

29. I agree

this isn't about rescuing CEO's it's about the millions of workers who need their jobs even at $14/hr. I'm glad Congress was tough on them. It's about time the top of the food chain took responsibility by giving something back to their companies instead of taking.
Lord knows the workers have.

[FriendlyReminder]

28. Oh yah, I'm sure he will be on the soup line soon.....

[mainegreen]

33. How much Ford stock does he own?

I'm sure he stands to make more if the stock rebounds.

[Festivito]

34. Maybe he can ask Congress if they'd do the same.

Until they fix things.

[cosmicdot]

35. SEC filing info

the proxy to stockholders, SEC Form DEF 14A, filed with the SEC this year by Ford shows who is on the Board of Directors; how much Board members are paid; exec compensation, other vital company info, etc. http://www.sec.gov Ford's filing in April 2008 for the Fiscal Year 2007:

Director Compensation (total)

John R.H. Bond
$311,248

Stephen G. Butler
$141,544

Kimberly A. Casiano
$153,502

Edsel B. Ford II
$619,668

Irvine O. Hockaday, Jr.
$130,694

Richard A. Manoogian
$131,832

Ellen R. Marram
$139,826

Homer A. Neal
$131,866

Jorma Ollila
$172,062

Gerald L. Shaheen
$55,640

John L. Thornton
$153,411

the people with the balance sheets in front of them, paid themselves over $2 million in the fiscal year; and, if they were really fortunate (their bios are in the proxy, too), they, also, sat on other Boards raking in additional pocket change, i.e., Stephen G. Butler, also, sits on the Boards of Cooper Industries, Ltd. and ConAgra Foods, Inc. His Board compensation from Cooper was $280,856; and, from ConAgra $211,716. Add the $141K from Ford ... not bad to compensate his 'retirement'. Mr. Butler was Chairman and Chief Executive of the accounting firm, KPMG LLP, from 1996 until June 2002. http://people.forbes.com/profile/stephen-g-butler/22440

Edsel Ford couldn't go without $600K?
http://www.sec.gov/Archives/edgar/data/37996/000095012408001746/k23773def14a.htm#128

What happened to the days Board members got $5-$15K or even $25K per year as a retainer fee?

For executive compensation over the last few years, go here
http://www.sec.gov/Archives/edgar/data/37996/000095012408001746/k23773def14a.htm#134

Alan Mulally
2007
Total compensation: $21,670,674

2006

$28,183,476

hopefully, Mr. Mulally has set up trust funds for several generations of family

[ChromeFoundry]

45. This is criminal

Alan Mulally
2007
Total compensation: $21,670,674

2006
Total compensation: $28,183,476

Compensated to destroy not only a major corporation, but how many families along the way? If he wanted to make a gesture... why not pool some of those executive's earnings together to float the company while the government decides how many more generations of tax payers they want to tap into.

Here's an idea.. fire all the executives and give control to the union workers, then proceed with a bailout plan.

[JDPriestly]

36. That's good news. This guy is getting the message.

[np33]

40. I'm still waiting for the heads of the banks

to make similar gestures. Hell I would be surprised if they didn't accept bonuses.

[Dover]

41. I remember when a younger generation of Fords took over the company and announced

that they would lead the way to fuel efficient, earth friendly vehicles.
A short while later they recanted. That was over a decade ago.
I've always wondered what was said to them to cause them to back off of a
leadership position. Who got to them?
Since then, the auto industry has told us they are simply responding to
our demand for gas guzzling, power gluttons. I don't believe that any more
than I believed the cigarette companies when they wouldn't take responsibility
for the addictive nature of their product, even as they directed their research
toward increasing the amount of nicotine and other addictive ingredients
and targeted young people in their advertising.

The auto companies did essentially the same thing...exploiting our country's
addiction to oil, rather than taking a leadership position and using their
persuasive advertising to direct us toward sustainability.
I also think the oil companies and foreign energy policy were encouraging them
to go that route.

I don't think they should be bailed out. They should be sold for parts
and placed in a dinosaur museum.

[Cronus Protagonist]

42. I'd settle for his company to pay their taxes in full

That would help out.

[phusion]

43. So why wasn't Congress this tough on the financial companies?

I mean, they asked for a plan for the auto execs and have convinced them to take a $1 salary and drive to the hearings. Meanwhile, the financial execs just get a shit ton of cash.

[Amonester]

44. ... because financial companies send them big checks ...

... on a regular basis at conditions unknown by We The People (re.: shadow government) ...

... but since it is quite obvious that We The People's letters, emails, and phone calls are ALWAYS IGNORED ...

... We The People are beginning to understand the reason why (and how many TRILLIONS it will cost for decades ahead) ...

[rhett o rick]

46. What a joke. It isn't their salaries that is the problem. He has a potential of millions tied up in

stock options, I bet. He can't cash them out now but if the government bails them out, bingo, he can sell his stock.

[No Elephants]

47. I have a feeling that his expense account, stock options, etc. will see

him through somehow anyway. And then, there are always those bonuses, platinum parachutes, etc. Don't cry for him.

[scisyhp1]

49. What's up with this stupid $1 a year deal?

Why not just make it $0 a year? Or better yet, why not charge those
CEOs a couple million bucks a year for the right to try fixing their
own mess? Or even better yet, why not put them in jail, confiscate all
their property, nationalize their companies, and appoint someone smart
who would run them responsibly for a decent wage of $100,000 a year?
What would be so wrong with that?

[Vidar]

50. Bravo, Mr. Mulally!

[4_TN_TITANS]

51. See what concessions the people get

when Congress shows some spine? To bad we got nothing for the financial bailouts.

[classysassy]

52. One dollar plus bonus

my bonus,4 mil,plus my buck It will be tough but we can make it.

[Political Heretic]

53. This is the guy who, when Congress asked him to take 1$/year, said "I think I'm good where I'm at."

Yeah....

Sorry, something about this making a bunch of "news" seems pretty pathetic. Of course he's going to say he'll work for 1$/year after Congress dick-slapped him back to detroit the first time his arrogant ass showed up.