Ford Executives To Take Thirty Percent Salary Reduction.

[bobdoering]

The Wall Street Journal (2/25, Dolan) reports, "Leaders at Ford Motor Co. will take a sizeable cut to their compensation this year, a move announced one day after the auto maker exacted new concessions from its hourly workers." Ford Executive Chairman William Ford Jr. and Chief Executive Alan Mulally said "they agreed to accept a 30% reduction in their salaries over the next two years." Ford's board of directors will "also forgo the cash portion of its members' compensation this year." In addition, "performance bonuses for salaried employees and senior executives for 2009 will be eliminated."

The Detroit News (2/25, Hoffman) reports, "The announcement comes as members of the United Auto Workers prepare to vote on a major amendment to their contract with Ford that includes new concessions and provisions for another round of buyouts for U.S. hourly employees." This time, workers will "receive between $20,000 and $50,000, depending on their job classification and retirement eligibility." Also, they "can pick either an additional cash payment of $20,000 or a $25,000 voucher that can be used to purchase a new Ford automobile." Ford and Mulally commented, "We know that success will require working together by all parties. To this end, we are announcing today additional changes to compensation for our senior leadership and salaried employees."

From SME Daily Executive Briefing

 

[Wes Bucey]

The Wall Street Journal (2/25, Dolan) reports, "Leaders at Ford Motor Co. will take a sizeable cut to their compensation this year, a move announced one day after the auto maker exacted new concessions from its hourly workers." Ford Executive Chairman William Ford Jr. and Chief Executive Alan Mulally said "they agreed to accept a 30% reduction in their salaries over the next two years." Ford's board of directors will "also forgo the cash portion of its members' compensation this year." In addition, "performance bonuses for salaried employees and senior executives for 2009 will be eliminated."

The Detroit News (2/25, Hoffman) reports, "The announcement comes as members of the United Auto Workers prepare to vote on a major amendment to their contract with Ford that includes new concessions and provisions for another round of buyouts for U.S. hourly employees." This time, workers will "receive between $20,000 and $50,000, depending on their job classification and retirement eligibility." Also, they "can pick either an additional cash payment of $20,000 or a $25,000 voucher that can be used to purchase a new Ford automobile." Ford and Mulally commented, "We know that success will require working together by all parties. To this end, we are announcing today additional changes to compensation for our senior leadership and salaried employees."

From SME Daily Executive Briefing

Somehow - I just don't think I'd spend my buyout on a car from the folks who were forcing me out of a job, especially since the top "mismanagement" put me in this position in the first place.

 

[somerqc]

Yes, but a free car is a free car.

If you are about to lose your job, know your prospects are the greatest in this economy to get another job quickly, AND your car is on its last legs - why wouldn't you take the new car?

Otherwise, I agree I likely wouldn't take the car.

 

[Big Jim]

It is nice to have a choice. It isn't a voucher for a car or nothing.

 

[bobdoering]

Might want to ponder what our congress, and their staff, is doing to cut costs in the light of the financial crisis. Could the government hold water to the same scrutiny as the companies they are forcing their will on?

 

[Jen Kirley]

Might want to ponder what our congress, and their staff, is doing to cut costs in the light of the financial crisis. Could the government hold water to the same scrutiny as the companies they are forcing their will on?

Maybe it's time to bring back the Line Item Veto.

 

[bobdoering]

Maybe it's time to bring back the Line Item Veto.

And someone with a big enough pen to use it!

 

[wmarhel]

Yes, but a free car is a free car.

If you are about to lose your job, know your prospects are the greatest in this economy to get another job quickly, AND your car is on its last legs - why wouldn't you take the new car?

Otherwise, I agree I likely wouldn't take the car.

Either way, you will still end up paying income taxes, SS, medicare, etc on it since it equates to income.

Better off with the cash.

Wayne