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JoeyM
JoeyM HalfDork
6/30/10 6:51 p.m.

http://www.autointhenews.com/ford-ceo-mulally-gets-paid-more-than-top-three-japanese-execs-combined/

www.autointhenews.com said: In 2009, Mulally reportedly earned $17.9 million in cash and bonuses, which is more than the CEOs of Toyota, Nissan, and Honda combined. This officially makes him the world’s top-paid auto chief. Taking in $10 million in 2009, Nissan’s CEO Carols Ghosn was the highest paid among Japanese companies. Honda’s Takanobu Ito earned $1.3 million, followed by Toyota’s Akio Toyoda who earned $1.1 million.

Is this justified? Discuss....

stuart in mn
stuart in mn SuperDork
6/30/10 7:04 p.m.

This link says his 2009 salary was $1.4 million, with a $5 million incentive bonus. I wonder which one is correct. Maybe the $17.9 million figure includes stock options. http://www.crainsdetroit.com/article/20100627/SUB01/306279988/1068#

JoeyM
JoeyM HalfDork
6/30/10 7:37 p.m.

Good explanation; I'm sure that "and bonuses" includes stock options. That makes me wonder if the author was comparing apples to apples, or if he compared Mulally's total compensation package to the other companies' base salaries.

P71
P71 SuperDork
6/30/10 8:07 p.m.

Considering he kept Ford out of bankruptcy, and they have gads of new/awesome products (2011 V6 and 5.0 Mustangs, Fiesta, Fusion Hybrid, Taurus/SHO, EcoBoost Flex, etc, etc) I would say he most certainly deserves it. Ford is kicking everybody's collective butts right now and did it without government bailout money.

Toyman01
Toyman01 Dork
6/30/10 8:20 p.m.

Yes. He is doing his job better than everyone else in his industry. He is worth more than all of rest of them put together.

CaptainSpaulding
CaptainSpaulding Reader
6/30/10 9:07 p.m.

agreed.

Xceler8x
Xceler8x Dork
6/30/10 9:13 p.m.

Yup..

TJ
TJ Dork
6/30/10 9:38 p.m.

Nope. Not because Ford isn't making good cars, but because I don't think any single person is worth that much money. I don't blame him - if he can get that much there is no reason to turn it down, but I don't see how his value to the company is equal to 360 workers making $50,000 a year.

Nothing against Mulally - I generally feel that way about everyone who makes that much. He's obviously worth that much to Ford since they are paying him that much.

Strizzo
Strizzo SuperDork
6/30/10 10:07 p.m.

In reply to JoeyM:

no, given the build quality i've seen, and the crap customer service at their dealers, i'd say the Nissan CEO is way overpaid

96DXCivic
96DXCivic Dork
6/30/10 10:10 p.m.

In reply to Xceler8x:

Damn Land Rover. And why is despite all the proof saying that BMW and Mercedes Benz being better, do I want a Jaguar more then those marques?

Adrian_Thompson
Adrian_Thompson HalfDork
7/1/10 8:01 a.m.

Sorry to the dissenters. I work for Ford and if his salary was double it would still worth every penny and more. Look at where he's taken us over the last four years and look at what's happened to the competition both domestic and foreign in the same time. A bargain at twice the price. I used to be one who thought that these massive salaries were insane, but witnessed first hand what an exceptional management team can do, these salaries are easily worth it. I see Mulally (and the rest of the senior management) as the reason I'm still working.

MrJoshua
MrJoshua SuperDork
7/1/10 8:27 a.m.

If he truly is responsible for Ford doing well, yes he is totally worth it.

pinchvalve
pinchvalve SuperDork
7/1/10 8:33 a.m.

His salary is nothing, compared to the fact that he can have any Shelby Mustang, GT40, Focus RS, SHO, or F150 Raptor that he wants!!! Lucky guy.

alfadriver
alfadriver Dork
7/1/10 8:40 a.m.
Adrian_Thompson wrote: Sorry to the dissenters. I work for Ford and if his salary was double it would still worth every penny and more. Look at where he's taken us over the last four years and look at what's happened to the competition both domestic and foreign in the same time. A bargain at twice the price. I used to be one who thought that these massive salaries were insane, but witnessed first hand what an exceptional management team can do, these salaries are easily worth it. I see Mulally (and the rest of the senior management) as the reason I'm still working.

+1.

One other "note" along with the good news- yesterday, we announced that our debt was going down by 4B yesterday, and will drop by 7B quickly thanks to good sales and good finances.

Noting how ahead we are of schedule for recovery, Alan has really earned this. Shocking for me to say.

Not to say we are done by any means- there's still alot that needs to be done. But the day he shook up the top of WHQ, you could feel the ground vibrate all across Dearborn.

TJ
TJ Dork
7/1/10 8:51 a.m.

Good to hear he has the support of the people working for him. Good leaders are rare. How many vehicles did Ford sell in 2009?

Wally
Wally SuperDork
7/1/10 9:05 a.m.

I would guess alot of that is in stock. seeing as he brought their stock up from the toilet I don't see why that would ne a problem. It's less than LeBron will probably end up making throwing an orange ball and selling a few shoes.

alfadriver
alfadriver Dork
7/1/10 9:10 a.m.
Wally wrote: I would guess alot of that is in stock. seeing as he brought their stock up from the toilet I don't see why that would ne a problem. It's less than LeBron will probably end up making throwing an orange ball and selling a few shoes.

On the stock thing- the best part about his leadership is how he is ignoring the stock value (unless sales of it helps pay debt) and focusing totally on the product.

Very much unlike a certain aussie who ran this company into the ground.

RossD
RossD Dork
7/1/10 9:19 a.m.

alfadriver
alfadriver Dork
7/1/10 9:23 a.m.
RossD wrote: In reply to alfadriver: This guy?:

I see a red x.

Kia_racer
Kia_racer HalfDork
7/1/10 9:24 a.m.

This is capitalism at its finest. You are worth whatever someone is willing to pay you.

Do I think that anybody is worth this much? No. But I don't have to pay his salary either.

GameboyRMH
GameboyRMH SuperDork
7/1/10 9:30 a.m.
TJ wrote: Nope. Not because Ford isn't making good cars, but because I don't think any single person is worth that much money. I don't blame him - if he can get that much there is no reason to turn it down, but I don't see how his value to the company is equal to 360 workers making $50,000 a year. Nothing against Mulally - I generally feel that way about everyone who makes that much. He's obviously worth that much to Ford since they are paying him that much.

+1

stuart in mn
stuart in mn SuperDork
7/1/10 10:21 a.m.

Well, he could be like Stephen Hemsley, the CEO of United Health Group (an HMO based in Minnesota) - his pay package for 2009 was $102 million.

Otto_Maddox
Otto_Maddox Reader
7/1/10 11:18 a.m.

Executive pay is a very complicated issue. It isn't determined by the free market or your average shareholders. It is generally determined by board members and other people who have a vested interest in paying all executives as much as possible regardless of their actual worth.

Seems like Mulally is doing a great job, though.

TJ
TJ Dork
7/1/10 11:21 a.m.

I think the fact that publicly traded companies are essentially owned by everyone (through mutual funds, pension plans, 401k's, etc.) that the end result is that they are accountable to no-one. It is the perfect setup if you can make your way into the club of the CEOs and Boards of Directors. The rest of us pay for it, but really have no say in the matter.

4cylndrfury
4cylndrfury SuperDork
7/1/10 11:24 a.m.
P71 wrote: Considering he kept Ford out of bankruptcy, and they have gads of new/awesome products (2011 V6 and 5.0 Mustangs, Fiesta, Fusion Hybrid, Taurus/SHO, EcoBoost Flex, etc, etc) I would say he most certainly deserves it. Ford is kicking everybody's collective butts right now and did it without government bailout money.

^^^this x a bazillion!

pay people whatever you want to pay them...as long as my taxes arent subsidizing you and keeping you afloat, the sky is the limit - once you start eating from the trough though, that story changes...CONSIDERABLY!

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