Apr 06, 2007 04:45AM GMT
Question
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Money - Investments
Ford's CEO made $28 million in 4 months. Do you think he deserved it?
Struggling Ford Motor Co., which posted a record $12.7 billion net loss in 2006, gave its new CEO Alan Mulally $28 million for four months on the job, according to the company's proxy statement filed with the Securities and Exchange Commission Thursday.His base salary was $666,667, which works out to annual pay of about $2 million. He also received restricted stock grants, which the company valued at $920,404, as well as 3 million stock options valued at $7.8 million. The stock options are not yet exercisable, and they have an exercise price of $8.28, or about 4 percent above current prices.
The details of the compensation packages and costs come as Ford moves ahead with plans to close plants and cut more than 30,000 hourly positions from the company in an effort to stem losses.
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Answered No
I keep telling you people you need to always have an "undecided" for us Libras.
On the one hand it's pretty obvious that no one deserves to make that much money, but frankly, with each company "one-uping" each other, it would be tough to hire quality CEO's that will make a difference.
BUT, I saw someone (sorry, I can't remember who) on TV the other night who said that in Japan the average CEO of a large company makes about 14-15 times more than their average worker. In countries like India and Pakistan (where many of our technical support jobs are going) the CEO's make maybe 4-6 times more than their average worker. In the US the average CEO of a large company makes 400, no that's not a mistake, that was 400 times more than their average worker. That's just obscene. -
Answered No
No one deserves that much pay unless their lives are at serious risk on a daily basis and even then that much is questionable. When the big 3 get their heads out of their arses and start paying CEO's and other top executives more reasonable salaries then we are all going to suffer, especially the auto workers. Toyota's CEO makes a mere $600,000 per year and they are very successful. Maybe the big 3 ought to start taking notes. -
Answered Yes
One should never diminish the redeeming qualities of Mr. Mulally. The rule of thumb is to attribute his expertise, explicit function, and know-how to a monetary value..To compare a CEO to an hourly worker is incompetent thinking. The 40-hourer, in many instances, slacks off, does not attend work on a daily basis, and really only dances to the music of their particular union boss and not to whomever is in charge of that department. A persons pay load package is only worth what the head-honchos are willing to dangle in front of that person. Begrudging someones wages is enept.................. -
As controversial as I think some will find your comments, i generally agree. The average worker in america...let's face it...is not that productive. CEO of major companies bring an incredible amount to the table and although not always successful in their new endeavor, they have tremendous experience are typically very smart and can prioritize and manage like the average worker has never seen or experienced.
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Answered No
They can pay this rat bastard all this money and cut back on Manufacturing jibs away... No wonder they over charge for the cars they make and I dont know a single oerson who can afford a new car who is buying these cars..... I guess the CEOs of other COs not.... -
Answered No
The whole premise is idiotic that the general stockholders allow this sort of compensation to exist when it is obvious that neither Ford nor GM get it after years of time to do so! I recently test drove a Ford 500 and compred to equally priced foreign brands it was awful. In the meantime all of the Japanese brands have come out with well priced luxury brands that kick American carmakers ASS. The automakers in the US are only now hanging on because of wise investments in foreign. They then lose money and way overpay thier top executives instead of wisely figuring out what the market really wants as product! Lol........Don't get me started! Give me the 600k plus salary and some rides in the corporate jet and a 3 mil bonus when the company turns a profit for 2 quarters and I will do it better than the fool bean counters that run it into thwe ground now! I will sign right here! -
Answered No
No, of course he didn't deserve it. The board was hoping if they hired the former Boeing CEO the stock would run up. I got a 'hot' tip to buy Ford, but the tip came from an unsavory, untested end of the rumor mill. The stock is inching up after the loss in earnings was anounced. Just not any thing I can see in the tea leaves. Read Poacher down below for my sentiment on the stock. Kick me if I'm wrong a year from now. -
Correct! And this guy left Boeing because he had them headed for disaster! Only the failure of Airbus to produce on grandious plans and a return to what they do best combined with unprecidented defense spending have put them well back on track. None of which this idiot saw coming!
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Answered No
No one 'earns' that kind of money. However, this is a free market capital system. We don't have to buy products from a company that does not comply with our way of thinking (one of the great freedoms of USA). Life is full of inequities, get over it, bump up your own ambition, just try harder, invest and/or save. Complaining and whining never accomplish any positive effect. I'd bet the farm, that 99 % of people keep right on buying those new cars (all the corporate folk make outrageous bucks, not just Ford's CEO),expensive electronics, clothes, and so on. When people start giving up the unnecessary crap more often, some of these overpayed jacks will get the message. -
Answered No
Unless he made Ford $1 billion over the last quarter. What is with
these companies and their golden parachutes? I am also against a
minimum wage, because no one gets paid it unless they have no skills or
are teenagers. It will only serve to put small companies out of
business or make managers work 75 hour weeks to make up the difference.
Sigh... Big business runs the world now. -
everyone thinks that raising the minimum wage is the way to go, and if you talk against that, you're a horrible person. an idiot i was recently talking to actually said "you can't raise a family on minimum wage, so they definitely need to raise it." she just didn't get the fact that you're NOT supposed to raise a family like that. get an education, get a future and get a life when you get a good paying job that you can be proud of b/c you EARNED your paycheck.
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I have 3 children, 2 with college degrees, good jobs, and doing nicely. My youngest is a lttle slow, as is her boyfriend, although both are very hard workers and dependable. The best they can do is low paying jobs, fast food, security guard, etc., sometimes working 2 jobs each. They aren't slow enough to be on SSI or any other government help, so I help, which often puts me in a bad position. When they need their car fixed or a tooth filled I cover it. They have no medical insurance, and their pay is so low that they couldn't afford it if their company offered it. Not every American is capable of "getting an education, getting a future, getting a life," but they definitely earn their paychecks doing dirty work with little respect.
My daughter, who is very outgoing, tried being a telemarketer, calling people for charities like the Cancer and Heart Associations, but people were so nasty, hate-filled, and cussing at her that she often went home crying. It was an opportunity for her to make a little more money ($7/hr + the slim possibility of $20-$30/wk bonus, wow), but she couldn't keep doing it. (You know, all you have to do is nicely ask them to take you off their list, and they have to do it with no comment. If you stay on the phone they HAVE to ask, ask again, and then ask for a donation or they LOSE THEIR JOBS. You're swearing at a person who has NO power over their situation. [not necessarily YOU, Sara, I'm sure you would never swear at a faceless person on the phon...I have 3 children, 2 with college degrees, good jobs, and doing nicely. My youngest is a lttle slow, as is her boyfriend, although both are very hard workers and dependable. The best they can do is low paying jobs, fast food, security guard, etc., sometimes working 2 jobs each. They aren't slow enough to be on SSI or any other government help, so I help, which often puts me in a bad position. When they need their car fixed or a tooth filled I cover it. They have no medical insurance, and their pay is so low that they couldn't afford it if their company offered it. Not every American is capable of "getting an education, getting a future, getting a life," but they definitely earn their paychecks doing dirty work with little respect.
My daughter, who is very outgoing, tried being a telemarketer, calling people for charities like the Cancer and Heart Associations, but people were so nasty, hate-filled, and cussing at her that she often went home crying. It was an opportunity for her to make a little more money ($7/hr + the slim possibility of $20-$30/wk bonus, wow), but she couldn't keep doing it. (You know, all you have to do is nicely ask them to take you off their list, and they have to do it with no comment. If you stay on the phone they HAVE to ask, ask again, and then ask for a donation or they LOSE THEIR JOBS. You're swearing at a person who has NO power over their situation. [not necessarily YOU, Sara, I'm sure you would never swear at a faceless person on the phone, I'm just speaking in general])
I don't know about raising the minimum wage. None of the jobs they have actually pay that low, and the only company in the area that I know of that does is McDonald's, which is why I refuse to eat there. But even at $6-$7 it's difficult to live without help, and without some sort of health care assistance.
Again, not every American can "get an education, get a future," but she has a life, and is a happy, sweet person, and there are a lot of Americans out there like her.(less) -
Magmeister,
Sorry about your daughter. I must say that I do hate telemarketers but I'm nice with them and usually say....not interested or I already give to my favorite charity - which is true. You have to be a tough cookie to work in that occupation - tough skinned and remember it isn't YOU people get upset at but that they got another call for more money. I hate to say no to all the charities but if I gave to everyone who called....I'd be broke. -
I don't think anyone, even the charities, expects people to give to every charity that calls, but since when is it okay to be rude, nasty, obscene, etc. to another person? What kind of example are people showing to their kids who are playing nearby? By the way, I talked to some of the people who worked with my daughter about this poll. They laughed. They said that people should remember that the telemarketers have your complete address and phone number at their finger tips, and the real nasties, the people who seem to take great pleasure in demeaning them may find that they start getting calls at 2 or 3 in the morning for awhile. (They say "I star 69'd him") They also said that if a person kindly asks ("I'm really not interested, and I know you have a tough job, but would you please put me on your do not call list?" then stay on the line long enough for them to verify their taking the right phone # off - the whole thing would take less than 30 seconds) to be put on the do not call list, they're happy to do it, but the one's who are, again, nasty and demeaning, are marked to be called back - repeatedly. It's simply a matter of showing a little respect for another human being. So if you keep getting calls after you've asked to be taken off the list, or if you suddenly start getting calls late at night, you'll know that someone out there considers you an a$$.
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Answered No
You know 50 years ago CEO's made about 10X what the factory workers made. Now its 1000X+ Thats outragous. They don't have any more responsability then they did then so why pay them so much now? Well the Board of Directors are all CEO's of other companies and if they keep the status quo or bump it up every chance they can get when it comes to their next compansation negotiation they can expect the other CEO's to give them as much or more then he gave them. I say CEO's get a base sallery no more then 10X what the lowest paid employee gets and can only get bonuses and stock options if the company makes money while they are in charge. -
Answered Yes
CEOs and CFOs have incredible liability these days. They personally guaranty accuracy. Also, I believe he was also compensated for options he left on the table when he left his last position. Remember, you probably wouldn't complain if it was the deal you negotiated for yourself.
Answered No
Wow, they should have hired me as CEO. I could have lost them twice as much money in half the time. And I'd have done it for only $7 million.