Ford’s CEO Alan Mullaly will arrive in Washingtion DC later this week after a 9 hour trip from Dearborn in a Ford Escape Hybrid. He will be there to defend Ford’s comprehensive plan to accompany a second request for a percentage of a 25 billion dollar government “bridge loan”. The plan was due and submitted to Congress by Ford today. A “comprehensive plan” is what Congress required after a dismal request and presentation by all three Detroit CEO’s two weeks ago. The US Congress is requiring all three automakers to submit two versions of the same plan showing how they will use the money. One version for Congress to review and another abbreviated version for us… the U.S. taxpayer.
There is no official word at this time how GM CEO, Rick Wagoner, or Chrysler CEO, Robert Nardelli, will be arriving in Washington DC. Alan Mullay has also stated that he’d be willing to work for $1.00/year in order for Ford to be granted a portion of the 25 billion dollar government loan.
Yes, it’s true that the compensation received by the CEOs of large corporations has risen to obscene levels by almost anyone’s measure. Sure, these folks work very hard and have had to fight their way up the ladder for years, but tens of millions of dollars or more a year? Why don’t the shareholders have a say in executive pay?
Everyone is pointing the finger at the heads of the big three for their current predicament, but congress shares much of the blame. For years our legislators have essentially been engineering automobiles. The automakers have had to comply with a never ending list of safety and emissions standards. That’s not to say that there should not be some standards, but carmakers have been subjected to onerous mandates. The unions also share in the blame as well. Yes, autoworkers deserve protection and fair pay. However, lineworkers receive total compensation far above their peers in other countries and in comparison to similarly trained and educated workers in this country.
Maybe what is currently happening in our economy is a much needed wake up call for all of us (myself very much included). We need to realize just how blessed and lucky and spoiled we are to live in America. Perhaps a few years of hard times would be a good thing for us.
Turn off the lights!
By David W. Allison. December 4th, 2008 at 6:16 amAfter Lee Iaccoca did the same in 1979 to get money from Uncle Sam to bail out Chrysler, I don’t see how anything less is an option.
When it comes right down to it, these CEO’s don’t need the money. They get enough perks, stock options, payments for sitting on the board of directors of other companies, etc that they don’t need the money. For them, the salary is just a way to measure up against the next guy. “Mine is bigger than yours.” The job title, getting their name in the news, and being the guy that saved Ford will be sufficient for his ego.
By Jess. December 3rd, 2008 at 7:38 pmI read a similar article, ford went through and IMO has a good plan for the future. They also have more operating cash than gm to get them through at least another year, plus they are selling off their other brands. They are selling their 5 corporate jets plus the CEO is willing to work for $1/yr until things get back on track. At least one of the big three has his head back in the game.
By BWill. December 2nd, 2008 at 10:17 am