Ford’s CEO Mulally Gets Pay Slashed After This
Ford Motor Company (NYSE:F) fell short in three crucial areas last year: market share, cash flow, and profit. As a result, CEO Alan Mulally has received a pay cut of 29 percent. The board of America’s second largest auto manufacturer awarded the chief executive a 2-million-dollar salary, $3.95 million in bonuses, and $15 million in stock, according to regulatory filings. This payment brings the total amount he has earned since joining the company in 2006 to a total of $162 million.
Ford has undergone large-scale restructuring efforts in Europe, where a dismal economic climate has taken its toll on a number of manufacturers, and served Ford some significant losses as well. Fortunately for the company, North American sales were up, and the profits carried the dragging markets, although not enough to reach the company’s targets.
“To the mass majority of people, these are enormous numbers,” David Whiston, an equity analyst with Morningstar, told Bloomberg. “But is it excessive? It really depends on who you ask. Ford shareholders, especially those that bought in the low-single digits, are probably thinking Mulally’s worth every penny.”
With the given salary figures, Mulally has made an average of $73,000 per day since 2006, and that assumes he worked all 365 days of the year.