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Posts Tagged ‘executive pay’

Ford CEO Mulally Pay Dips to Just $21 Mil

Exec credited with saving Ford drew $30 mil year before.

by on Mar.15, 2013

Ford CEO Alan Mulally.

Compared to his counterpart at General Motors, Alan Mulally was a well-paid man last year, taking home $21 million as part of a package including salary, bonuses and stock options. But the Ford Motor Co. CEO nonetheless saw his compensation dip from the $29.5 million he made in 2011.

Given much of the credit for helping save the second-largest of the domestic makers – and helping it steer through the Great Recession without the federal bailouts taken by cross-town rivals GM and Chrysler, Mulally has still been rewarded handsomely since leaving Boeing in 2006, Ford financial statements pegging his total earnings at $169.3 million.

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Mulally’s 2012 earnings were disclosed in Ford’s latest proxy statement. It shows he got the same $2 million salary as the year before, but stock options fell from $21.4 million to $14.3 million, while the exec’s bonuses tumbled from $5.5 million to $3.95 million.


Turnaround of Slumping Europeans Auto Market Could Take Years, Warns Ghosn

Renault/Nissan CEO remains strong battery car proponent.

by on Mar.05, 2013

Don't expect much improvement in the European car market until at least 2016, warned Ghosn.

The slump in the European market continues to worsen, exceeding even the most gloomy forecasts, cautioned Carlos Ghosn, the CEO of the Renault/Nissan Alliance, and it is likely to take at least three years before things start to rebound, he said during a media roundtable at the Geneva Motor Show.

In a wide-ranging conversation, the Brazilian-born executive said that despite slow sales he remains a strong proponent of battery power. He also said that global corporations should take a hint from the ballot initiative approved by Swiss voters last weekend and put executive salaries up for shareholders to decide.

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European car sales plunged to the lowest level in nearly two decades last year and Ghosn, like many other observers, had been forecasting demand would slip another 3% to 5% as the Continent continued to struggle with a massive debt crisis that nearly shattered the European Union. But based on the results of the first two months of the year, the car market could post as much as an 8% drop for 2013, with little sign that the situation is ready to bottom out, warned the executive.

“The only question is whether it will be bad or very bad” in 2013, said Ghosn, adding that, “I don’t think anybody is forecasting a pick-up of the European market for the next three years.”


Marchionne Takes Home $0 from Chrysler – but $18.9 mil from Fiat

The night job pays off.

by on Mar.15, 2012

Why is this man smiling? An $18.9 million paycheck certainly helps.

In an era of executive excess, Chrysler CEO Sergio Marchionne made headlines, earlier this month, when it was reported he took no compensation for his work at the U.S. automaker last year.  That was all the more impressive compared to the news, that same day, that Ford Chief Executive Alan Mulally had received $58.3 million in stock alone for 2011.

But for those wondering how deeply Marchionne might have to dig into his pockets to cover the reported $3.5 million home he recently purchased in the Detroit suburbs there’s no reason to worry.  While he didn’t get money from Chrysler he did more than okay wearing his other hat, as CEO of the U.S. maker’s Italian partner Fiat.

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In all, Marchionne took home 14.5 million Euros, or $18.9 million,  last year, including $3.2 million in salary and another $15.69 million in stock that vested last year.  Major companies like Ford and Fiat like to use stock as an incentive, the argument being that with enough shares an executive like Marchionne or Mulally will be motivated to maximize investor value.


Carlos Ghosn Becomes Japan’s Top-Paid Gaijin

Nissan chief handily out-earns Toyota, Honda chief execs – but lags well behind Ford’s Mulally.

by on Jun.30, 2011

Ghosn collects $12 million at Nissan and another $1.7 million for his duties at Renault.

It’s expensive in Tokyo.  But Nissan Chief Executive Carlos Ghosn shouldn’t have to worry much about the price of sashimi – the Brazilian-born executive drawing a paycheck of nearly $12 million last year.

That figure, which includes pay, stock options and bonuses, doesn’t include the $1.7 million Ghosn also collected from Nissan’s French alliance partner Renault, where he also serves as CEO.

Ghosn’s 2010 compensation made him the highest-paid “gaijin,” or foreign, executive in Japan, readily out-earning Sony’s CEO Howard Stringer, who made $10.66 million for 2010, as well as the managers at Nissan’s primary automotive rivals.  By comparison, Akio Toyoda, the founding family heir and chief executive at Toyota, made $1.8 million, while Honda’s Takanobu Ito had to get by on a mere $1.6 million.

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But while lavish by Japanese standards, Ghosn’s remuneration was modest in comparison to the paycheck taken home by Ford Motor Co.’s top two bosses.  Chief Executive Officer Alan Mulally’s total package nudged up towards the nine-figure mark, including the $56 million in stock he was awarded, while Ford Chairman Bill Ford Jr. claimed $42 million in stock on top of his pay and bonuses.


Help Wanted, $1 A Year

Can Chrysler attract high-priced talent on a strict budget?

by on May.05, 2009

Can you believe they paid me this much to LEAVE Home Depot?  And now, outgoing Chairman Bob Nardelli is earning just $1 a year.

Can you believe they paid me this much to LEAVE Home Depot? And now, outgoing Chairman Bob Nardelli is earning just $1 a year.

Help Wanted: Brilliant, visionary, experienced leader willing to put in countless 24/7 days resuscitating bankrupt manufacturer.  Must be thick-skinned, cool under constant fire and already financially independent.  Willingness to work for $1 a year a definite plus.  Please call Tim Geithner at the U.S. Treasury Dept. for more details.

While you might not see that ad in your local classifieds, it pretty much fits the basic guidelines of what Chrysler will likely be looking for, if and when it emerges from Chapter 11 reorganization.

The automaker’s current CEO is already working for that miniscule amount, Bob Nardelli volunteering to take a mega-million-dollar cut, late last year, when the automaker went to Washington searching for a federal bailout.  Before you begin feeling sorry for Nardelli – who says he’ll stay with the automaker until it’s wrapped up the bankruptcy process – recall that his parting gift when leaving his job as chairman of Home Depot, a few years back, was a fluffy golden parachute worth $210 million.    (more…)

Hyundai’s Krafcik: Public Sees Automakers as Greedy Dimwits

Korean exec calls on industry to enact pay caps, better safety, higher mileage

by on Feb.11, 2009

Hyundai CEO John Krafcik: Who're you calling a greedy dimwit?

Hyundai CEO John Krafcik: Who're you calling a greedy dimwit?

If you’re an automotive executive fretting over the collapse of the U.S. market, the tidal wave of negative headlines and the steady assault of restrictive new government regulations, stop lamenting. You’ve only got yourself to blame, declared John Krafcik, acting CEO of Hyundai Motor America, during his keynote speech at the 2009 Chicago Auto Show.

“There is no other industrial sector with a bigger perception problem,” Krafcik contended.

It’s not unusual for industry executives to use the spotlight of an auto show to identify the industry’s problems and then call for tepid solutions. But Krafcik’s blunt speech was unusually tough on industry leaders, who must take significant steps to reverse both the automotive downturn – and the decline in the industry’s reputation – he argued.

Asserting that “the decade of greed didn’t end in the ‘80s,” the former Ford product executive said American consumers have come to view automotive executives as “dimwits,” who are “unresponsive to consumer needs,” despite the “lavish perks and unnecessary entitlements” they take home.