Ford Motor Company lost $2.7 billion in 2007. Now the firm reports that CEO Alan Mulally earned himself a cool package of about $22 million in 2007. Unions are up in arms.
Ford Motor Company is reporting that it is paying its CEO Alan Mulally more than USD22 million (€13,95 million) for work done during the 2007 financial year. Ford reported losses amounting to USD2.7 billion during the same period. Union boss Ron Gettelfinger who serves as President of United Auto Workers said: "We did not sacrifice so that management could find a way to reward themselves with higher compensation,” referring to the agreement the UAW made with the auto industry in 2007.
Mulally replaced heir apparent Bill Ford Jr. at the helm in 2006 when he was hired by Ford, now chairman, from a successful flight running aero company Boeing. That year he received USD39 million in compensation for his troubles. Ford is to reward all workers, including hourly ones in North America with bonuses as a thank you for helping to guide the company through hard times. It aims to return to profitability in 2009 after narrowing annual losses by USD10 billion in 2007. Partly to thank are the sales of the Aston Martin brand. Jaguar and Land Rover money should only reflect in next year’s annual financial report and we know more or less how much that will be already.