Ford chief Alan Mulally awarded $58.3M in company stock - Page 2

Moby Vic · 09-03-2012, 10:49 AM

But that's only a single data point.

Anyway, what's Nasser doing these days? Maybe some other manufacturer will hire him and he can implement his brilliant scheme.

Mulally clearly has a greater focus on product than Nasser did. I suppose he does have the "advantage" of heading a corporation that's struggling for survival, though, whereas Nasser was saddled with a profitable company flush with cash that could buy prestigious European marques at will.

Kryton · 09-03-2012, 11:39 AM

Quote:

Originally Posted by davway

Disgraceful.

Actually, i take that back.
He got paid junk stock and the investment paid off in his favour - good luck to him.

However, if he had have been paid $58m, then that is disgraceful.

Moby Vic · 09-03-2012, 11:43 AM

Most American executives make the bulk of their pay through stock options, not salary (but their salaries are also healthy!).

jpd80 · 09-03-2012, 11:48 AM

Quote:

Originally Posted by davway

Actually, i take that back.
He got paid junk stock and the investment paid off in his favour - good luck to him.

However, if he had have been paid $58m, then that is disgraceful.

What is disappointing is your continued referral to Ford stock as Junk stock, it's now back at investment grade.

Mulally has been paid every year since he came to Ford and let's not forget that he threw away $14 million
in Boeing stock options when he walked out the door after being passed over three times by lesser skilled
individuals, something that has really put Boeing in the soup with Dreamliner...

gtfpv · 09-03-2012, 12:03 PM

errrr 58.3 mill . errrm whats was wrong with just a i high hourly rate ?

jpd80 · 09-03-2012, 12:15 PM

Quote:

Originally Posted by gtfpv

errrr 58.3 mill . errrm whats was wrong with just a i high hourly rate ?

The difference is that:
- Mulally gets a base salary
- the stock is basically bonuses for the company doing well
- Ford can create stock for Mulally to sell at a prescribed time/rate without paying him in cash.

Kryton · 09-03-2012, 12:38 PM

Quote:

Originally Posted by jpd80

What is disappointing is your continued referral to Ford stock as Junk stock, it's now back at investment grade.

Whats your problem buddy?
At the time he was given the stock, it WAS junk stock.
Id also like to see you point out my "continued referral" to Ford stock as being junk - Ive mentioned it ONCE and that was in past tense.
Time to dismount your high horse and let others express their own opinions - ones that you may not like or agree with.

**Polyal** · 09-03-2012, 12:52 PM

Quote:

Originally Posted by Moby Vic

Most American executives make the bulk of their pay through stock options, not salary (but their salaries are also healthy!).

Which kind of makes sense, I mean you want your CEO to be doing the best for the company as a whole, not just have a mega high base wage.

Incentive I guess..not that you should really need it at that level but everyone does better with a carrot.

jpd80 · 09-03-2012, 01:27 PM

Quote:

Originally Posted by davway

Whats your problem buddy?
At the time he was given the stock, it WAS junk stock.
.

I said disappointing because "Junk StocK" is a term that GM fans like to throw in our faces
and if me saying "disappointing" is being high horsed then I'm riding a Shetland pony....

jpd80 · 09-03-2012, 01:35 PM

Quote:

Originally Posted by Moby Vic

Anyway, what's Nasser doing these days? Maybe some other manufacturer will hire him and he can implement his brilliant scheme.
.

Jac Nasser is currently CEO of BHP Billiton, probably the world's biggest miming company..

Nasser and Ford were a bad mix,all of that is best left in the past as that Ford company died at the end of 2006
and was reborn in early 2007 as a new invigorated company with a plan and the right people to do it.

mytgxl · 09-03-2012, 01:39 PM

What a load of garbage he`s already paid to do his job! I suppose no one lossed their jobs! & no one else helped him!

jpd80 · 09-03-2012, 01:48 PM

Quote:

Originally Posted by 1 bad ef

What a load of garbage he`s already paid to do his job! I suppose no one lossed their jobs! & no one else helped him!

In fact the opposite happened Last year, Ford:
- rehired people in the US as part of a plan to increase work force by 15,000 inside three years
- gave all production workers up to $6,000 bonus cheques

Iggypoppin' · 09-03-2012, 02:57 PM

To the naysayers: Please rewind 5 years, and take the reigns from Alan Mullaly. Do better than him. Thankyou, report back in 5 years with Ford in a better position.

SumoDog68 · 09-03-2012, 05:58 PM

Quote:

Originally Posted by Iggypoppin'

To the naysayers: Please rewind 5 years, and take the reigns from Alan Mullaly. Do better than him. Thankyou, report back in 5 years with Ford in a better position.

You give mr Alan too much credit - noone is worth that much money .

Bossxr8 · 09-03-2012, 07:19 PM

Quote:

Originally Posted by Moby Vic

As far as I know, the Explorer debacle remains the costliest automotive recall in history. It cost Ford more than $1B.

The good that came from it was that it got rid of Jac Nasser, who cared about everything but building Ford vehicles, and that it forced Ford to become leaner ahead of the financial crisis that nearly destroyed GM and Chrysler.

Ford are making 6-8 bilion per quarter profit, they are extremely strong at the moment and have cash reserves of something like 20 billion. Debt is something like 15 billion?

They are in a very strong financial position, if Europe gets out of the red it will be even more so.

Quote:

Originally Posted by jpd80

Jac Nasser is currently CEO of BHP Billiton, probably the world's biggest miming company..

Nasser and Ford were a bad mix,all of that is best left in the past as that Ford company died at the end of 2006
and was reborn in early 2007 as a new invigorated company with a plan and the right people to do it.

I was suprised Jac the Knife didn't do too good for Ford US, he did a really good job when he was FoA CEO. He was also the man who bought the V8 back to Falcon

**DJM83** · 09-03-2012, 07:23 PM

Quote:

Originally Posted by 1 bad ef

What a load of garbage he`s already paid to do his job! I suppose no one lossed their jobs! & no one else helped him!

Im sure you could do a better job.
Have you contributed to the survival of Ford?

jpd80 · 09-03-2012, 07:24 PM

Quote:

Originally Posted by Bossxr8

I was suprised Jac the Knife didn't do too good for Ford US, he did a really good job when he was FoA CEO. He was also the man who bought the V8 back to Falcon

He tried to do too much too quickly in a culture that didn't want to change and he did treat Ford like a dot com company
by trying to conjure huge increases in stock price to garner support for his expansion plans meant to provide Ford with
diversified income. Too many irons in the fire and then the Firestone thing on top.... but it's all water under the bridge..

Dr Smith · 09-03-2012, 08:11 PM

Quote:

Originally Posted by jpd80

Jac Nasser is currently CEO of BHP Billiton, probably the world's biggest miming company..

Nasser and Ford were a bad mix,all of that is best left in the past as that Ford company died at the end of 2006
and was reborn in early 2007 as a new invigorated company with a plan and the right people to do it.

Jac is actually the Chairman of BHP Billiton.
He struggled with $US9+billion profit for 6 months to Dec 2011, lol

Bossxr8 · 09-03-2012, 08:22 PM

Quote:

Originally Posted by jpd80

He tried to do too much too quickly in a culture that didn't want to change and he did treat Ford like a dot com company
by trying to conjure huge increases in stock price to garner support for his expansion plans meant to provide Ford with
diversified income. Too many irons in the fire and then the Firestone thing on top.... but it's all water under the bridge..

He stills owes me a computer too, he pledged to supply every employee across the globe with a full computer setup and an internet connection, but the program got ditched when he got axed.

Where is it Jac, cough up man, don't make me come round there

Moby Vic · 10-03-2012, 12:12 AM

Quote:

Originally Posted by Bossxr8

Ford are making 6-8 bilion per quarter profit, they are extremely strong at the moment and have cash reserves of something like 20 billion. Debt is something like 15 billion?

Yes, they are making profits now. They weren't when William Clay Ford Jr. brought in Alan Mulally. They mortgaged everything, including the Blue Oval trademark, to cover debt--and that was after selling off the PAG.

Moby Vic · 10-03-2012, 12:15 AM

Quote:

Originally Posted by jpd80

Jac Nasser is currently CEO of BHP Billiton, probably the world's biggest miming company...

chevypower · 10-03-2012, 03:16 AM

Quote:

Originally Posted by SumoDog68

You give mr Alan too much credit - noone is worth that much money .

If somebody is willing to pay it, then they are.

SumoDog68 · 10-03-2012, 08:40 AM

Quote:

Originally Posted by chevypower

If somebody is willing to pay it, then they are.

That amount of money is obscene - i am all for fair pay for the amount of work done and relative contribution and would love to see justification for the execs pay.
In my opinion top execs income should be capped as in maximum wage - after all we do have a minimum wage don't we ?
Somehow can't see it happening ...

jpd80 · 10-03-2012, 09:04 AM

Quote:

Originally Posted by SumoDog68

That amount of money is obscene - i am all for fair pay for the amount of work done and relative contribution and would love to see justification for the execs pay.
In my opinion top execs income should be capped as in maximum wage - after all we do have a minimum wage don't we ?
Somehow can't see it happening ...

If you owned the company or had the bulk of voting rights, you too could pay execs whatever you like.
For the record, Ford A stock has been progressively diluted since around 1956 so its effect on the company
is minimal and the way Ford family's B Stock is undiluted, they retain 40% voting power in the company.

So armed with those figures and knowing Mulally is mostly paid in stock that doesn't cost Ford
anything except for market dilution of A-stock, all is well. Heck, the Ford's have regularly converted
debt bonds held by Ford credit into stock to pay down company debt, in business it's a way to
creating money and good on them for doing it.

And let's not forget Mulally hasn't received much from these stock options yet,
he can only exercise those sales of stock progressively over the next three years.

mytgxl · 10-03-2012, 10:31 AM

Quote:

Originally Posted by DJM83

Im sure you could do a better job.
Have you contributed to the survival of Ford?

I didn`t say I could do a better job! I said he already gets paid a handsome salary to do the job that he was hired for,why else would you hire him if you think he couldn`t do the job! And for your second remark, yes I have helped contributed to the survival of ford as I buy there parts & brought one of their cars, so I did my bit

& I didn`t even get paid!

& if they asked me for a donation, I would give one! Because I`m more passionate & loyal to ford than Alan Mulally will ever be , so don`t ever question my loyalitly!

Moby Vic · 10-03-2012, 04:03 PM

How do you know how passionate about Ford Alan Mulally is? He took a major leap of faith in accepting the job in the first place.

Of the American auto manufacturers, only Ford has a CEO with production experience. The US government installed Dan Akerson at GM. I can't even remember who is theoretically running Chrysler at the moment (Marchionne is calling the shots, but there is an ostensible American CEO beneath him).

FTE · 13-03-2012, 12:49 AM

Quote:

Originally Posted by jpd80

They paid him in stock which he is free to sell and get his money, it cost Ford basically nothing to do it...

actually it costs Ford their entire business if their CEO does a bad job.
Any CEO gets shares as incentive to increase the value of the company they run. The better they run it the more the shares are worth. The more the shares are worth the more the CEO is worth.
So its not just a matter of being given shares in a company, you've got to make the right decisions on everything from whats hitting the market today to whats best for the company to survive into the future.

The world today isn't the same as former CEO's who ran these companies. Today the global effects from any economy is almost enough to cripple a car company or any industry, its a cut throat world on a larger scale than any time in history with recession from countries now affecting what happens here which before wouldn't necessarily hurt us before.

Its a job I wouldn't want