In an ever widening gap between America's CEO's and middle America…
Ex-Ford employees will be happy to learn that Ford CEO Alan Mulally will now be able to purchase a small island. While Ford lays of 30,000 employees, the recent financial release shows the top executives at Ford were able to pocket $62 million in compensation as reported to the SEC, even as the company reported losses last year to be $12.6 billion.
Ford brought Mulally in from Boeing last October in a move that can only be appreciated by rock stars and pro athletes. Mulally replaces Bill Ford in the position, recent disclosures also show Mr. Ford to have earned $10.5 million last year. Mulally received a $666,667 salary, an $18.5 million bonus, and $8.68 million in other compensation that included relocation costs.
As reported in the Wall Street Journal, Ford spokesperson Becky Sanch, gives explanation for the generous pay package, citing the need to entice Mulally with such compensation to pull him away from his role with Boeing:
"When you look at Alan’s numbers, although they look large, its important to know we did have to recruit him from a long and established career at Boeing."
Stanch also gave some reasoning as to why Ford was willing to offer such a package, adding the compensation was,
"…related to him forfeiting performance stock-option awards at his previous employer."
It is possible that Mulally can give Ford the spark it needs to regain its role as an auto industry leader, but at least so far, the top brass at Ford are unwilling to bring his compensation package in line with the current state of the company's performance.
The question I ask is this: How can American companies justify paying any CEO $24 million for four months worth of work- at any time- let alone when the company is losing money and laying off workers?
What is it about these CEO's that makes them so charming, so glib that they are able to persuade a board of directors to pay compensation packages drastically out of line with the rest of society?
It isn't right.
Comments