Ford’s Way Forward plan: Pay CEO $30 million, have him buy 50,000 cars a year
September 8, 2006 by William K. Wolfrum
In the company’s latest attempt to cease existing, Ford Motor Company has agreed to pay its new chief executive, Alan Mulally a $2-million base salary as well as an $18.5 million bonus. Mulally will also receive 4 million stock options priced at the grant date’s current fair-market value of $8.28 along with 600,000 restricted stock units.
Wall Street experts said Mulally will likely decline on the stock options until the price settles at Ford’s current target price of zero.
An anonymous source at Ford hinted that part of Mulally’s deal will be to purchase in excess of 50,000 Ford vehicles each year.
Ford executives also were treated to a meeting with President George W. Bush, who gave them some expert tips on how to run a business straight into the ground. The meeting is part of Bush’s rumored new “America: Why Produce Things When You Can Work At Wal-Mart?” Act.
Ford lost $1.4 billion during the first half of the year and will likely soon close more plants, sell off more of its assets and cut thousands of more jobs as it continues its push to become a subsidiary of Honda.
–WKW
[...] Actually, what’s most impressive is that the media in Canda has noticed. One wonders if they take it with a shrug of the shoulders like most Americans do. Hell, it probably only takes a couple hours for the top-paid CEOs in the U.S. to make the average employee’s annual salary. Yet no one makes much a fuss. And this doesn’t seem to be the type of thing that self corrects. [...]