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punk

punk

Phoenix, AZ
January 2004

APR 05, 2007 05:22 PM

CNN.com

Say what, Beavis?

NEW YORK (CNNMoney.com) -- Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job, according to the company's proxy statement filed with the Securities and Exchange Commission Thursday.

The Ford (Charts) pay package for Mulally comes on top of the $7.4 million that aerospace company Boeing (Charts) had previously reported paying him for his eight months running that company's commercial aircraft unit before he made the move to Ford at the beginning of September.

Mulally's pay package at Ford included a $7.5 million hiring bonus, as well as $11 million that Ford described as an offset for forfeited performance and stock option awards at Boeing. In addition he received $55,469 for relocation costs and temporary housing.

His base salary was $666,667, which works out to annual pay of about $2 million. He also received restricted stock grants, which the company valued at $920,404, as well as 3 million stock options valued at $7.8 million. The stock options are not yet exercisable, and they have an exercise price of $8.28, or about 4 percent above current prices.



Some of the total amount paid is in stock options, but there's damn sure some cash-money in there, too. Just one of many reasons corporate America blows: CEOs and other executives are paid millions upon millions of dollars for desk work and the only people who suffer during hard times are their employees.

Gringo

Gringo

Spokane, WA
May 2006

APR 05, 2007 07:57 PM

Henry Ford must be rolling in his grave. After all, he was all about the America workforce. Paying double the going rate of salary in 1914 ($5 per day), pioneering the 5-day work week in 1926....now his descendants and corporation is fucking the very people he respected.

HeyZeus

HeyZeus

Oakland, CA
August 2006

APR 05, 2007 08:00 PM

Ah, the almighty Invisible Hand giving workers The Finger.

Stiles

Stiles

Oakland, CA
November 2002

APR 05, 2007 09:00 PM

I think that's a ridiculous amount of money before any results are posted.

That said, those stock options are worthless at this time - the price is underwater. They are an incentive to make the company profitable and get the stock price to rise.

That's what this


The stock options are not yet exercisable, and they have an exercise price of $8.28, or about 4 percent above current prices.


means.



HeyZeus

HeyZeus

Oakland, CA
August 2006

APR 05, 2007 09:14 PM

Stiles said:
I think that's a ridiculous amount of money before any results are posted.

That said, those stock options are worthless at this time - the price is underwater. They are an incentive to make the company profitable and get the stock price to rise.

That's what this


The stock options are not yet exercisable, and they have an exercise price of $8.28, or about 4 percent above current prices.


means.



Do you know what the company means when it says the options have a value of 7.8M? This is somehow the cost to the company.


Stiles

Stiles

Oakland, CA
November 2002

APR 05, 2007 09:28 PM

HeyZeus said:
Do you know what the company means when it says the options have a value of 7.8M? This is somehow the cost to the company.




Big-corporation accounting is unfamiliar to me beyond the basics, so I don't know how they arrived at that particular figure. The restricted stock grant valuation in questionable too, depending entirely on the details of the deal.

He's still making a shit-ton of money any way you slice it. I understand that any top flight CEO would need to be persuaded with lots of cash to join a failing company in a brutal cyclical industry like cars... but couldn't they find someone who didn't need to be bought out of a juicy contract, and a commercial jet guy at that?

WTF?

Tallboy66

Tallboy66

Chicago, IL
January 2005

APR 05, 2007 09:38 PM

I'll take $55,000 to NOT relocate. surreal

d_day

d_day

San Bernardino, CA
July 2002

APR 05, 2007 09:50 PM

TheGringo said:
Henry Ford must be rolling in his grave. After all, he was all about the America workforce. Paying double the going rate of salary in 1914 ($5 per day), pioneering the 5-day work week in 1926....now his descendants and corporation is fucking the very people he respected.



Ol' Henry wasn't quite the altruistic folk hero most people want you to believe. Yes, he increased wages substantially and cut hours to eight hours a day and five days a week. The effects were immediate. Attendance rates went up, turnover rates fell to almost nothing and workers stopped getting injured on the job. It was about increasing profits, not taking care of employees, and it worked amazingly well.

skeptik

skeptik

New Orleans, LA
February 2004

APR 05, 2007 10:46 PM

punk said:



...
His base salary was $666,667,
...





Damien?!?

DevilsReject

DevilsReject

Cleveland, OH
February 2007

APR 05, 2007 11:05 PM

No wonder the new Ford truck i was looking at was close to 40K.

Stiles

Stiles

Oakland, CA
November 2002

APR 06, 2007 06:41 PM

BrokenandHostile said:
No wonder the new Ford truck i was looking at was close to 40K.



That's all of 'em. List price is for suckers. My Dodge turbodiesel stickered at over $40,000 and I got it for under $32K with three years of 0% financing included - and the factory still makes a killing on pickups, even at those markdowns.

Nobody with a pulse pays MSRP.

tech29

tech29

I'm lost
July 2004

APR 06, 2007 07:04 PM

Americans have to realise you car industry is not what it once was. The Japanese busines model of cheap small fuel effecient cars is what you want. Sometimes your evaluation of yourself can be tainted by national pride. You dont want 2 tonne pick ups with crap milage as much as before. Your manufacturing plants arent to the same standard as European and japanese plants in terms of flexablity to make mutliable models.
In the Toyota company one plant can make 5 models, to change models you reprogram a robot. Your going to have to revaluate what a succesful car plant actually is. I read somewhere that GM most effecient plant closed down becaus of the model they made was unsuccesfull in the market place. The japanese would have just changed the model made at the plant. I hope your industry survies but I doubt it . China is moving up fast in the car manufacturing game ,wont belong now till no one else but they make cars. frown

DevilsReject

DevilsReject

Cleveland, OH
February 2007

APR 06, 2007 07:11 PM

Tech29 said:
Americans have to realise you car industry is not what it once was. The Japanese busines model of cheap small fuel effecient cars is what you want. Sometimes your evaluation of yourself can be tainted by national pride. You dont want 2 tonne pick ups with crap milage as much as before.



Yes i do. I drive a two ton truck right now, and wouldn't give it up for anything, i am not overly concerned with gas prices, hell i am even looking into a diesel. I like my big trucks, and there are a lot of people that always will.

Your manufacturing plants arent to the same standard as European and japanese plants in terms of flexablity to make mutliable models.
In the Toyota company one plant can make 5 models, to change models you reprogram a robot. Your going to have to revaluate what a succesful car plant actually is.



They can re-evaluate the plant all we want, if the Unions don't agree with it, it doesn't happen.

I read somewhere that GM most effecient plant closed down becaus of the model they made was unsuccesfull in the market place. The japanese would have just changed the model made at the plant. I hope your industry survies but I doubt it . China is moving up fast in the car manufacturing game ,wont belong now till no one else but they make cars. frown



Do you have a link to that? I'd like to read just why it shut down.

DevilsReject

DevilsReject

Cleveland, OH
February 2007

APR 06, 2007 07:14 PM

Stiles said:

BrokenandHostile said:
No wonder the new Ford truck i was looking at was close to 40K.



That's all of 'em. List price is for suckers. My Dodge turbodiesel stickered at over $40,000 and I got it for under $32K with three years of 0% financing included - and the factory still makes a killing on pickups, even at those markdowns.

Nobody with a pulse pays MSRP.



I didn't even haggle the price at that point, i usually stick to used trucks. The market is so glutted with people trading in perfectly good truck to buy new trucks, that i can't pass up buying a good truck with 50k miles on it and it only being a few years old.

Stiles

Stiles

Oakland, CA
November 2002

APR 06, 2007 07:18 PM

Tech29 said:
Americans have to realise you car industry is not what it once was. The Japanese busines model of cheap small fuel effecient cars is what you want. Sometimes your evaluation of yourself can be tainted by national pride. You dont want 2 tonne pick ups with crap milage as much as before. Your manufacturing plants arent to the same standard as European and japanese plants in terms of flexablity to make mutliable models.
In the Toyota company one plant can make 5 models, to change models you reprogram a robot. Your going to have to revaluate what a succesful car plant actually is. I read somewhere that GM most effecient plant closed down becaus of the model they made was unsuccesfull in the market place. The japanese would have just changed the model made at the plant. I hope your industry survies but I doubt it . China is moving up fast in the car manufacturing game ,wont belong now till no one else but they make cars. frown



Newsflash, dude:

Toyota sells shitloads of pickups and SUVs here, including:

Tacoma
Sequoia
Land Cruiser
RAV4
4Runner
FJ Cruiser
Highlander
Tundra

that's eight different trucks and SUVs compared to only six different models of cars sold here.

You apparently know little of the US market and less of industry practices so spare us the half-assed analysis, please.

Stiles

Stiles

Oakland, CA
November 2002

APR 06, 2007 07:27 PM

BrokenandHostile said:

I didn't even haggle the price at that point, i usually stick to used trucks. The market is so glutted with people trading in perfectly good truck to buy new trucks, that i can't pass up buying a good truck with 50k miles on it and it only being a few years old.



I was dealing with the oddities of the HD (3/4 ton and above) turbodiesel market, where the trucks typically pile up hard commercial mileage fast, and yet keep higher residual values than the light-duty gas half tons people tend to buy for personal use. Year-old trucks with 35k and out of warranty were only selling at a $3,000 discount to what I could get a new one for, and the new one had the free 3 year financing as opposed to the 7-9% the best used car loan could do at the time, making it a no-brainer to buy new.

I still can't get over the number of people willing to pay $10,000 for an eight year old truck with 160,000 miles on it.