Thanks to a collapse in new car sales, pay cuts were almost daily occurrence in 2008. Worker and union concessions grabbed most of the headlines last year, but a new filing by the Securities and Exchange Commission reveals that even top executives felt the economic crunch last year.
According to The Detroit News, Ford CEO Alan Mulally saw his compensation drop by 37 percent last year. Mulally’s total 2008 compensation was valued at $13.6 million, although $8.7 million of that was made up of essentially worthless stock options – thanks to the current price of Ford’s stock. Mulally’s salary totaled $2 million last year.
Mulally’s pay will be decreased by another 30 percent during 2009 and 2010, according to Ford .
Additionally, Ford CFO Lewis Booth saw his salary decline to just over $1 million last year, representing a pay cut of about 66 percent. Booth took home $4.7 million in 2008, including bonuses and other perks.
Mark Fields, Ford’s President of the Americas, saw his salary dip by 68 percent in 2008, taking home a salary of $1.3 million. Fields’ 2008 compensation totaled $4.8 million.
Ford’s salaried employees are also slated to take a pay hit this year. Bonuses have been indefinitely suspended for 2009 with stock bonuses for manager expected to be less than last year’s figures.
