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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.


No Exit? Mulally Not Ready to Leave

But is lack of timetable actually hurting maker?

by on May.11, 2012

CEO Alan Mulally and Chairman Bill Ford at Ford's 2012 shareholders meeting.

It is the question that won’t seem to go away – even if Alan Mulally insists he isn’t planning to leave anytime soon.

During the maker’s annual shareholders meeting and during a subsequent Q&A session with reporters the topic of Ford Motor Co.’s succession plan was again the hot topic.  And, once again, the CEO insisted he is not counting the days until retirement.

While that may be good news for many folks who believe Mulally is the best man to keep the company on track, might his reluctance to set a timetable and name a successor be working against Ford, particularly in its bid to drive up its stock price?

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“We have a robust succession plan for every member of the team,” said the 66-year-old Mulally, echoing comments he has made, seemingly ad nauseum, over the last several years.

Ford Chairman Bill Ford Jr. tried to deflect the latest round of questioning with a little humor.  As to when the company would be willing to let Mulally stay on, he responded, “Well, we said 2025, maybe 2030.”


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.


Mulally Makes Millions – Marchionne Zip – for 2011

Ford exec not limited by government oversight.

by on Mar.07, 2012

Ford CEO Alan Mulally had a good pay day this week.

Ford Motor Co. has clearly benefited from the fact that it was the only Detroit automaker to skip a government bailout.  So has its CEO Alan Mulally, who received a whopping $58.3 million in stock as part of a long-term incentive package.

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Many analysts believe Ford has drawn in a sizable number of customers willing to reward it for finding its own way through the industry’s worst downturn in decades – unlike its cross-town rivals.  But there was another penalty for taking government aid totaling around $85 billion during 2008 and 2009, the companies covered by the federal automotive bailout face strict limits on the compensation senior executive can make without Washington’s approval.


Ford Growth Plans “On Track,” Insists Mulally

Maker still has its challenges.

by on Dec.14, 2011

Ford has "stress-tested" its growth strategy, insists CEO Alan Mulally.

With both sales and market share up for 2011 and Ford likely to post the strongest earnings it has seen in years, the maker’s goal of “growing profitably…is on track,” asserted CEO Alan Mulally.

It has clearly been a good year for the maker, which posted $1.6 billion in earnings for the most recent quarter after landing solidly in the black for the first half of the year.  It has slashed debt, seen sales grow by double digits in many months and will finish the year with about a 0.1 point increase in share, which has climbed back to 16.8%, putting it less than three points behind arch-rival General Motors.

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That’s not to say Ford doesn’t have its challenges, company officials acknowledged during a series of conversations at a holiday gathering with the media.  Japanese makers, sidelined for much of 2011 due to earthquake and flood-related production shortages, are roaring back with a vengeance.  And Ford has taken some unexpected hits on the quality charts lately after steady gains in recent years.


Mulally Named “CEO of the Year”

"The foresight showed."

by on Jun.28, 2011

Ford boss Alan Mulally is named CEO of the Year.

Ford CEO Alan Mulally has been judged by a jury of his peers – and declared “2011 Chief Executive of the Year.”

Credited with guiding the second-largest of Detroit’s hometown makers to an unexpectedly strong turnaround since joining the company in autumn 2006, Mulally was honored by CEO Magazine, which collected nominations from its 147,000 readers.  The former Boeing executive joins an elite group that previously included former Microsoft boss Bill Gates, GE’s Jack Welch and Southwest Airlines’ Herb Kelleher.

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“The success he showed in the face of incredible difficulty was just extraordinary,” said James Turley, a member of the award selection committee and himself chairman and CEO of Ernst & Young.  “The foresight,” Turley added, “showed.”

Other members of the committee included chief executives from companies including Office Depot and MetLife.


Ford Competitive Despite Higher Debt, Other Issues

CEO promises to continue improving competitive position.

by on Apr.02, 2010

Ford "is competitive" despite a hefty debt load and an inability to match the concessions given GM and Chrysler, said CEO Alan Mulally.

Ford Motor Co. is fully competitive with its domestic rivals, and indeed with the rest of the auto industry, the automaker’s CEO Alan Mulally, tells, despite its hefty debt load and its inability to win all the concessions it has sought from its U.S. workers.

There’s little doubt Ford is on a roll, industry analysts praising the efforts Mulally has made since joining the company, in 2006, and consumers responding well to the company’s latest product line-up.  But those analysts also caution that there’s a downside that some believe could haunt the company.

Ford was the only one of Detroit’s Big Three to forego a federal bailout, last year, and to avoid plunging into bankruptcy like Chrysler and General Motors.  “I’m pleased we respected all of our debt-holders and all of our stockholders,” Mulally proclaimed, following his keynote speech marking the opening of this year’s New York International Auto Show.

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But the downside is that Ford couldn’t shed its tens of billions of dollars in debt like its cross-town rivals.  And today, that adds up to millions of dollars in interest, alone, that Ford is covering while Chrysler and GM are not.  That, said Mulally, is why Ford has been paying down its debt, converting some to equity, last year, and now scheduling another cash payment for its $23 billion “revolver,” the business equivalent, he suggested, of a home equity line.

“We’re going to keep improving the balance sheet,” he explained, in an interview, “but keep the entire revolver in place.”


Mulally Still Sticking With the Basics

What a difference a year makes, says Ford CEO.

by on Dec.21, 2009

Ford has received a big payoff for not taking a federal bailout, like its crosstown rivals.

Like a coach that has found a successful formula, Ford Motor Co. CEO Alan Mulally said he plans to keep the company focused on its basic plan of emphasizing steady and continuing improvement in the company’s products. “We’re going to maintain a laser like focus on the plan,” he said.

“What a year. It was a fantastic year,” said Mulally, following a background briefing with reporters, adding that the domestic industry is in better shape than it was only a year ago when Detroit’s automakers had been castigated on Capitol Hill after appealing for federal aid. “What a difference going into this auto show,” said Mulally.


Mulally, who is now Detroit’s most senior CEO, said he was glad his presence in Washington helped General Motors and Chrysler win government support.  Other governments support their auto industries, he said.


Good News Could be Bad News for Ford

Workers reject concessions; exec pay, profits spur backlash.

by on Nov.02, 2009

Ford CEO Alan Mulally will likely have some good news to announce in regards to Q3 earnings, today, but the news will be undercut by word the UAW has rejected a package of proposed concessions.

CEO Alan Mulally will likely good news on Q3 earnings, today, but it will be undercut by the UAW's rejection of proposed concessions.

With one of the worst recessions slowly dragging to a close and auto sales just beginning to show some vague signs of life after the more severe downturn in decades, one might think the likelihood of a good third-quarter earnings report by Ford Motor Co. would be something to cheer about.

Not necessarily.  Ironically, it could make it even harder for Ford to compete in the long-run.

Though the automaker has so far posted profits of $834 million for the first six months of 2009 – a sharp turnaround from the $29.8 billion it lost between 2006 and 2008 – this year’s black ink was largely due to debt reduction and one-time charges and, and not a true profit from operations.  But the third quarter, according to analysts’ estimates, is expected to bring black ink from what Ford is supposed to do best: build and sell automobiles.

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The forecasts variety widely.  One survey, by Thompson Reuters, predicts a relatively modest loss of 13 cents, barely 10% of the $1.31 loss during the third quarter last year.  But J.P. Morgan analyst Himanshu Patel is more bullish, forecasting a 16 cent profit per share.