Isn’t it interesting that powerful, dynamic, substantial things like war, marriage, and even sports can be debased and hit with the Money Argument stick? Examples: Iraq war funding; Paul McCartney and Heather Mills; and the recent National Hockey League lockout.
So it surprises not a one of us when a CEO of a major American corporation draws attention to himself and his company by making $28,000,000 for four months of work. Go ahead, read it again.
We’re not talking base salary here; this is everything included. Hiring bonus, base salary, $11million to offset the forfeited stock options at his old company, relocation expenses, and the gifts of new stock options for the new company and restricted stock grants.
Noper, we’re not just talking about base salary. I’ll give you that. But we’re not talking Tiger Woods, Michael Jordan, Wayne Gretzky, David Beckham either. Those guys have been or are the reason why the CEO, COO, Presidents of the Board and all those kinds of guys make money. Sports is a really different thing. Take the hockey players out of the rink, and people don’t show up, thereby making the owner/CEO poor.
Take Alan Mulally out of the Ford boardroom and I doubt the company’s recent profits would change.
I realize you can’t measure a CEO’s performance by the sales of his company’s products over his first four months, but…. I mean, really. C’mon. $28,000,000? He is a 61-year old who turned Boeing (compensation $7.4mil/8 months) around magnificently, and you then decide to sign him with a bonus of $7.5million?
You may want to scroll down and click to inform yourself, pointing out that if you want the top talent you’ve gotta pay for it. Amen. We all want more qualified MP’s, Congressmen, judges and mayors but if we’re not willing to tempt them away from lucrative positions with appropriate salaries and benefits, why would they serve us? Ford clearly feels the same way.
Meanwhile, full-time workers and supervisors received one year’s worth of bonuses which totaled between $300-$800 per worker. ‘Oh, you’re sweet, thanks so much.’
Meanwhile Ford is closing plants and cutting 30,000 hourly positions (aka people) from its payroll. Meanwhile, in 2006 Ford lost $12,700,000,000