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Big Payday for Ford’s Mulally

Exec lands $29.5 mil in pay – after $58.3 mil stock package.

by on Mar.30, 2012

Ford CEO Alan Mulally at a Paris news conference.

The turnaround at Ford may not be playing out quite as fast as shareholders would like but it’s certainly delivering for CEO Alan Mulally, who landed a $29.5 million compensation package for 2011, the maker has revealed.

That’s more than double what the number two Detroit maker gave Ford family heir and company CEO Bill Ford in the form of pay and bonuses.  And Mulally’s big payday follows the announcement earlier this month that the former Boeing executive had received $58.3 million as part of a long-term incentive package.

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Few executives in the auto industry have received more kudos than Mulally, who is credited with initiating many of the critical steps needed to not only revive Ford Motor Co. but also help it sidestep the bankruptcy-and-bailout route taken by its cross town rivals, General Motors and Chrysler, in 2009.

Nonetheless, there has been at least some pushback.


Ford Hands Raises, Bonuses to White-Collar Workers

First raise since 2010.

by on Jan.19, 2012

Ford CEO Alan Mulally: time to share the wealth.

About 20,000 Ford workers will have reason to celebrate after receiving their first combination of merit raises and bonuses since 2008.

The announcement – first revealed in a letter to workers last week – reflects the maker’s increasing fortunes, Ford reporting $6.6 billion in earnings for the first three quarters and expecting to add about $1.7 billion more to that tally, according to analysts’ estimates, when it reports earnings for the last quarter later this month.

The raises, which will take effect on April 1 should average about 2.7% and apply to 20,000 salaried employees – most of them in the U.S. and Canada.

Workers were given performance bonuses last year, and merit raises in 2010.  The last time they received both bonuses and pay hikes was in 2008.

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White-collar workers have normally received substantial financial packages in the Detroit industry but pay and benefits were sharply curtailed during the years leading up to the Great Recessions, when both General Motors and Ford were forced into bankruptcy.  Ford was able to avoid a Chapter 11 filing by taking on about $30 billion in debt – which it is now rushing to pay down.


Ford Wants to Close $8-an-Hour Labor Cost Gap

Could prove contentious issue during upcoming auto talks.

by on May.09, 2011

Ford CEO Mulally's huge pay package could make it difficult to win UAW concessions.

In an industry where even a nickel’s added cost can make a competitive difference, Ford is dealing with an issue of dollars and sense that could turn into a big issue as it heads back to the bargaining table with the United Autoworkers Union.

The maker says it currently is paying its U.S. union workers $8 an hour more than what non-union factory employees make at the “transplants” operated by makers like Toyota, Honda and Hyundai.  On average, Ford employees are earning $58 an hour, including wages and benefits, compared to the average $50 cost of labor at foreign-owned factories.

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“We cannot continue to have a cost gap with the competition and still be able to make significant U.S. investment and create new jobs,” the automaker emphasized in a blog posting on the website that it set up to discuss bargaining issues. “For Ford to be fully competitive in the years ahead, we’ll need to focus on closing the gap even more.”

The second-largest American automaker has generally declined to discuss bargaining issues, part of a joint union-management strategy to avoid the sort of confrontational tone that has traditionally colored the start of negotiations.  But the cost gap is certain to be one of the key issues Ford plans to put on the table, and it appears the maker could be presenting its case directly to workers hoping they will pressure UAW negotiators to place jobs ahead of wages and benefits as a new contract is hammered out.