The Ford Motor Company is having a difficult time. The company has posted 12.7 billion dollar loss for 2006. Nevertheless, in these bad times, the new Chief Executive Officer is doing well financially. Ford paid “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”.

link: Ford CEO: $28M for 4 months work

Let’s do some math. Let us assume that Mr. Mulally worked every day for those four months. That’s a possibility of one hundred and twenty four days (31 X 4= 124). The filing with the Security and Exchange Commission says he was paid twenty eight million dollars ($28,000,000.00). That means that Mr. Mulally was paid two hundred and twenty five thousand dollars ( $225,000.00 plus change - but we will just use round numbers) for each day. In addition, there are perks like the company jet and so forth.

Undoubtedly, some people at Ford will not have work soon. Does ‘Corporate America’ see anything wrong with this picture?

Catherine Forsythe
Director of Operations
FlyingHamster: http://flyinghamster.com/

[tags]ford motor company, pay, executive compensation, financial loss, corporate america, catherine forsythe[/tags]