Ford CEO Alan Mulally nets $58.3 million 0

Alan Mullaly has done a superb job as the Ford CEO since taking over. No one is in doubt about that. The company was suffering from major debts in 2006 when Mr Mullaly took on the reigns of the company. After a slow start Ford eventually made major profits from 2008.

Is the huge pay out morally right?

Some have questioned the compensation the Mr Mullaly has received. With many families struggling with debt in North America is it right that a total of $58.9 million was paid out. Mr Mullaly did not perform all tasks and received plenty of help. The financial state of America does not justify such a big pay out many would argue.

Ford’s profits over the last three years

Ford profit’s equate to a staggering $29.5 billion when taking into account the last three years. This was almost a 100 per cent turnaround after making losses from 2006 to 2008 which equated to $30.1 billion.  Trade shares now stand at $12.09 after plummeting to $1.01 in November 2008.

That isn’t all. More compensation is to come for Alan Mulally. Thanks to the company’s performance in 2011, a report on the amount of money due will be announced in the upcoming weeks.

Pay after tax

The total pay into Mr Mulally’s pocket will not fully equate to $58.9 million. After tax, that amount comes down to $34.5 million. Total stock for Mr Mulally’s equates to over $100 million in the past two years.

Other CEO pay

The Chief Executive of Chrysler and Fiat, Sergio Marchionne did not any receive compensation.

Volkswagen’s CEO Martin Winterkorn was received compensation of $12.2 million and was the highest paid CEO in Germany in the year 2010.

Nissan’s CEO Carlos Ghosn received $12.2 million for compensation from 2010- 2011 performance.

This made his pay the lowest and Mr Winterkorn’s pay lower than the average, which equated to $15.3 million. It is still quite a considerable pay cheque to take home however.

Mr Mullaly’s is estimated as the highest. This now makes him the highest earner amongst all car companies.

Toyota’s President Akio Toyoda received 136 million Yen on top of a 24 million bonus for the company’s performance ending March 31st 2011.

If these bumper pay cheques are anything to go by, the car industry is performing very well at present. There can’t be a crisis, can there?