Ford to give Mulally bonus payment after he retires

[nruggiero]

Ford to give Mulally bonus payment after he retires
Automotive News
February 19, 2013

DETROIT (Bloomberg) -- Ford Motor Co. is planning to pay a bonus to CEO Alan Mulally after his employment ends as a reward for leading the automaker through its turnaround.

The payment will be based on Ford's contributions to Mulally's company retirement and benefit equalization plans, the company said today in a regulatory filing. Ford reported net income of $5.67 billion for 2012 and its shares climbed 20 percent, outpacing the Standard & Poor's 500 Index's 13 percent rise.

The agreement for the payment was dated Feb. 13 and is "a clarification of a prior agreement," Jay Cooney, a company spokesman, said in an interview. "Nothing has changed."

No amounts were disclosed in the accord.

Ford reclaimed investment-grade credit ratings and paid out its first dividend since 2006 on the strength of its namesake brand, the only vehicle line to top 2 million U.S. sales last year. Mulally, 67, has instituted a global product development plan called One Ford to boost profits by selling the same models globally, rather than different versions for various regions.

Ford has earned $35.2 billion the past four years after losing $30.1 billion from 2006 through 2008. Executive Chairman Bill Ford elevated Mark Fields to COO in December from president of the Americas, positioning the 23-year veteran of the company to succeed Mulally after 2014.

Mulally's compensation for 2012, including salary and benefits, will be revealed later this year in the company's proxy statement. Ford rewarded Mulally with stock worth $58.3 million in March of last year and $56.6 million a year earlier.

Full article available at link.

[FanOfDurant]

Mulally is a beneficiary of designs and engineering already in place before he came. And That's a fact. I've gone over Ford's portfolio time and time again. Ford makes their money on their trucks. And for good reason they sell in big numbers.. I will never take that away from them. He however had nothing to do with it. He also benefitted from the fall of Chevrolet... Another thing he had zero to do with. Ford trucks would not have taken off like they did had Chevrolet been on their game in the first damn place. The Super Duty in 1999 and the new F-150 in 2004 sealed the deal. He had Zero to do with either....

And I still contend he benefits from GM who till this very day artificially limits Chevrolet's potential letting not Chevrolet loose to go and kick Ford's blue oval behind into the next universe. Ford can be the best there is, Chevrolet is not allowed because of GMc/Buick.. Mulally is no savior folks, he just got lucky and was at the right place at the right time in history. If anything, that money should go to the designers and engineer's that put Ford in the spotlight again. It was them who designed the sleek body designs, pushed for the high quality/high dollar interiors, went forward with their engineering quest for off road domination with their trucks.. On and on. Mulally did what exactly?


I have far more love for Mark Reuss. And Dan, well.... I suppose he tries.

[nruggiero]

^Mulally's legacy he will leave will be One Ford.

[big swede]

And the golden parachute comes screaming back with a vengeance.

[BBDOS CV8]

Mullaly was brilliance of a sort - an evangelist for simplified structures and costs savings, but he hasn't tackled underlying issues. This worked at Boeing, where he reduced variation to some degree and thereby got costs under control. Now look where they are - they've lost the plot again. Ford also has issues - quality of some parts being brought in (Mustang manual trans, DSGs for small cars) and 'One Ford' is notable for not producing a homogenised line - the Fusion/Taurus/Mondeo fiasco is one example and looks like not being resolved. Cadillac isn't out of the woods, but it's doing brilliantly compared to Lincoln which is like a Kremlin Premier or the last few popes - dead, just not unplugged.

[YEH]

Meanwhile, VW's CEO, Winterkorn, takes a pay cut despite VW having been more profitable than GM, Ford and Chrysler together.

[free_energy0]

If he could have focuses on Ford while integrating JLR or reviving Lincoln, then he'd have a legacy. Instead he focused on Ford at the expensive of JLR, just as it was about to pay off, and Lincoln.

[FanOfDurant]

^Mulally's legacy he will leave will be One Ford.

I'll give you that. I wish I could have got a bonus like that guy for streamlining bloated messes. Goodness, I've had to do that a good dozen times to fairly large operations and was lucky to get overtime. Good for him for keeping it real & genuine.


Still, Ford had no GMC though to eliminate. They took Mercury cars off the table to your typical American consumer. Big whoop... Just make the Ford cars nicer to make up for it and of course it worked like a charm.. It's not rocket science.. Mercury didn't stick a badge on Ford trucks. And that's where the big money is... Ford tried brand dilution once with a Lincoln truck. Big mistake.

I suppose I'll give Mulally credit for keeping Ford the real deal instead of some badge job joke. They are indeed the genuine article. When you buy a Ford, you buy a genuine Ford.... Not so with Chevrolet any longer unfortunately. Just like the Real companies under the GM holding company were long long ago until they all just became he same 'general' thing with different badges..... That's still where my admiration ends for Alan. The credit in my book goes to the engineering dept, design dept and the bean counting dept who didn't hold back.

[akbar]

Mullaly should be given credit for reining in internal feifdoms and getting all the executives to toe the Ford line.
Also credit for hiring Farley and improved marketing.

The most gutsy thing Ford did is they took their survival money from bankers and bet it all on product development (new engines for trucks, faster refreshes for critical products) as their back to the wall assault on the competitors. They executed brilliantly. I dont know who gets credit for that.

Bill Ford gets credit for the vision to know where changes were needed and making them.

[BlueMontreal]

Bill Ford gets credit for the vision to know where changes were needed and making them.

Bill Ford also pushed Ford to pursue better fuel economy (back in 2006) and now Ford is perceived as a leader in fuel-efficiency.

[steve333]

>And I still contend he benefits from GM who till this very day artificially limits Chevrolet's potential letting not Chevrolet loose to go and kick Ford's blue oval behind into the next universe. Ford can be the best there is, Chevrolet is not allowed because of GMc/Buick<

I agree 100%. Now, instead if Pontiac holding Chevy back, it's Buick.

I do think Mullaly did a good job though. His biggest mistake has been Lincoln and their naming scheme, My Ford Touch or whatever the hell they call it, and the Focus' interior is cramped with a muddled dash and balky tranny.
other than that he's done a good job, a heck of a lot better than GM's CEOs

[Al465]

Mulally is a beneficiary of designs and engineering already in place before he came. And That's a fact. I've gone over Ford's portfolio time and time again. Ford makes their money on their trucks. And for good reason they sell in big numbers.. I will never take that away from them. He however had nothing to do with it. He also benefitted from the fall of Chevrolet... Another thing he had zero to do with. Ford trucks would not have taken off like they did had Chevrolet been on their game in the first damn place. The Super Duty in 1999 and the new F-150 in 2004 sealed the deal. He had Zero to do with either....

And I still contend he benefits from GM who till this very day artificially limits Chevrolet's potential letting not Chevrolet loose to go and kick Ford's blue oval behind into the next universe. Ford can be the best there is, Chevrolet is not allowed because of GMc/Buick.. Mulally is no savior folks, he just got lucky and was at the right place at the right time in history. If anything, that money should go to the designers and engineer's that put Ford in the spotlight again. It was them who designed the sleek body designs, pushed for the high quality/high dollar interiors, went forward with their engineering quest for off road domination with their trucks.. On and on. Mulally did what exactly?


I have far more love for Mark Reuss. And Dan, well.... I suppose he tries.

I agree Mually got lucky in many ways. Now he thinks he's a legend in his own time. He does not deserve all those millions dollars he's getting. He sure has the media buffaloed.

[YEH]

The most gutsy thing Ford did is they took their survival money from bankers and bet it all on product development (new engines for trucks, faster refreshes for critical products) as their back to the wall assault on the competitors. They executed brilliantly. I dont know who gets credit for that.

That was the Ford family pressuring to do that since the last thing they wanted was for Ford to go into bankruptcy (GM could have done the same thing and was in better shape financially than Ford since they had cash flow from the Chinese market, but when the subprime/derivatives mess destroyed the economy, the credit markets went with it).

While Mulally has done some good things, Ford hasn't done a good job with its launches and Ford has been lagging behind GM in the fast growing BRIC markets.

New data shows Ford sold fewer vehicles and lost market share in most major markets in 2012. The data was revealed in a Securities and Exchange Commission filing on Tuesday.

According to the filing, which was obtained by The Detroit News, Ford sold 5.67 million vehicles worldwide during 2012, falling short of the 5.69 million vehicles the Dearborn-based automaker sold in 2011.

Ford's U.S. Market share dwindled to 15.2 percent in 2012, well off the company's 16.5 percent market share in 2011. In fact, Ford's 2012 slice of the U.S. market was the company's lowest since 2008 when it accounted for 14.2 percent of all new vehicle sales.

On the opposite side of the globe, Ford increased its market share in China to 3.2 percent, the company's highest on record. However, with just 627,000 Chinese sales, Ford remains a relatively small player in the world's largest auto market.

Ford's net profit also slipped in 2012, but the automaker still managed to post a a $5.7 billion net income, besting most analysts' predictions.

http://www.leftlanenews.com/fords-sa...d-in-2012.html

[megeebee]

Good. He can buy back the Lexus he had before he took the job!

[Rock Brocaine]

Lotta of sour grapes in the room. Much like Marchionne, I say get over it. They BOTH made changes and steered the ship in the right direction. If nothing else he's done doesn't impress you guys, the foresight to mortgage the company to stave of being in the same situation as GM is a brilliant enought move to get my praise. Nobody, not even Bill Ford had the balls to do that. And while the products were in the pipeline as mentioned, they were still losing their asses until the products came online. They didn't have the cash to hold out. Ford wouldn't be darling the Big Three had they gone bankrupt as well, even if they had good product coming. I've never seen Mullay toot his own horn either, his praises come from within, so who are you guys to critize unless one of you are an exec or upper management that had access to him and can says he doesn't deserve it.