EXECUTIVE COMPENSATION
Super Moderator
Joined: Jan 2008
Posts: 40,006
Likes: 1,517
From: Maine, Virginia
Agreed, these fine men of the auto world most certainly saved Ford's bacon. Mulally was no less than a visionary when Ford began shuttering plants and pairing off it's assets.
But, how much is enough? I don't begrudge anyone from earning all that they can but is anyone really worth 29 Million?
Our most junior Navy Seals are earning less than 25K per year. Our highest paid flag officers are earning less than 150K per year.
Perhaps the cost of our goods could be a little less with slightly lower compensation packages for the top execs.
But, how much is enough? I don't begrudge anyone from earning all that they can but is anyone really worth 29 Million?
Our most junior Navy Seals are earning less than 25K per year. Our highest paid flag officers are earning less than 150K per year.
Perhaps the cost of our goods could be a little less with slightly lower compensation packages for the top execs.
Hotshot
Joined: Oct 2002
Posts: 18,488
Likes: 22
From: The Big, Oregon
I have heard it explained in a way that makes some twisted sense: A CEO is a CEO is a CEO. The field doesn't matter, the guy at the top has people below him who handle that sort of minor detail. Since the job market is so broad, CEO pay ends up being so high to keep them where they are or to attract appropriate talent. A bad CEO gets fired (usually with a disgustingly large severance package), but when you hear about a new CEO coming in either they quit someplace else with less pay or they want a challenge.
So, as in anything else, that market is driven by greed.
So, as in anything else, that market is driven by greed.
Lead Driver
Joined: Sep 2007
Posts: 8,180
Likes: 669
From: Scio, OR
Ford earned 20.2 billion in 2011, or 20,200 million. Mulally's 29.5M divided by that 20,200M (*100) is about .15%.
So, assuming you bought a Ford for 40,000, and subtracted Mulally's pay from it, you would have saved $60.
So, assuming you bought a Ford for 40,000, and subtracted Mulally's pay from it, you would have saved $60.
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Cargo Master
Joined: Apr 2003
Posts: 3,476
Likes: 224
From: Frequently frozen MN
Unreal -- I mean it's not like they have a 40 inch vertical leap, or can find the open man in virtually any defense. (j/k)
Seriously, it's a lot of money, but typically it's a lot of job. 40 hours a week, not so much. And your wife better be on board with entertaining visitors. The higher you go, the more you and the company tend to merge.
Also, in well run companies, a lot of the pay is 'at risk. I worked for a pretty decent outfit, and from 50 to 80% of executive pay was based on profit sharing. If their part of the company didn't make money, they took a big hit. Tended to keep them focused.
From what I read Mulally has done a pretty bang up job, so good for him.
Personally, I'm going with the lotto
hj
Seriously, it's a lot of money, but typically it's a lot of job. 40 hours a week, not so much. And your wife better be on board with entertaining visitors. The higher you go, the more you and the company tend to merge.
Also, in well run companies, a lot of the pay is 'at risk. I worked for a pretty decent outfit, and from 50 to 80% of executive pay was based on profit sharing. If their part of the company didn't make money, they took a big hit. Tended to keep them focused.
From what I read Mulally has done a pretty bang up job, so good for him.
Personally, I'm going with the lotto
hj
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Post Fiend
Joined: Jun 2001
Posts: 5,228
Likes: 5
From: Running Springs CA
2011 revenue was $128.2B, so $29.5M is about .02% Since Ford gets about $38,000 of that $40,000, that's closer to $7.60 in Allan's pocket.
Super Moderator
Joined: Jan 2008
Posts: 40,006
Likes: 1,517
From: Maine, Virginia
noun
1.
the male of the honeybee and other bees, stingless and making no honey.
2.
a remote control mechanism, as a radio-controlled airplane or boat.
3.
a person who lives on the labor of others; parasitic loafer.
4.
a drudge.
Here ya go, I found the correct definition of "drone" for ya. I hardly consider the custodians or any other honest laborer to be a drone. It takes the honest efforts of every employee to make the company work.
Post Fiend
Joined: Jan 2006
Posts: 20,589
Likes: 2
From: Charlotte, NC
Top executives are paid way too much. To me it's a moral issue (so it's not one I'd have the Gov't sticking it's snout in......). When you have that much of a difference between the factory floor and the 3rd floor, you're creating 'classes'.......It's not just the CEO (I know the OP mentioned 3 executives), it's the top suits.
Moderator
Joined: May 2007
Posts: 158,276
Likes: 11,947
From: Greenfield, MA
Jim...my guess is that Mr. Mulally works a whole lot more than 40 hours per week. The point remains the same...it does seem like an obscene amount of money. I'm sure the majority was in stock options which they can redeem anytime.
Post Fiend
Joined: Jun 2001
Posts: 5,228
Likes: 5
From: Running Springs CA
Ford is not exactly an ordinary corporation in that 40% of the voting shares are held by a foundation or trust owned and controlled by the Ford family. Allan is an employee. His compensation package was negotiated by the BOD, which is ultimately controlled by Ford family members. In reality, Bill Ford, Jr. probably hired him.
IMO, Boeing was stupid to let him walk. It wasnt just about money, but the power and prestige of the CEO position.
IMO, Boeing was stupid to let him walk. It wasnt just about money, but the power and prestige of the CEO position.