Ford’s CEO Annual Salary

I never reached that height in my career, becoming a CEO that is, when I decided to leave my lot from a busy corporate life; although getting the top executive post was my goal then. I managed to reach the top executive level though and have enjoyed the hefty salary, benefits, and perks accompanying the office. However, by comparison, the salary of executives at Detroit’s Big Three are way of the chart and what I received then would look like that of an office clerk. This morning, I enjoyed (with envy) reading this news:

Ford CEO Alan Mulally said he'll work for $1 per year if the company has to take any government loan money.

After grilling the CEOs at hearings last month, Congressional leaders demanded plans from the automakers by Tuesday to show that they will survive if they get federal funds. The plan Ford submitted said the company will cancel all management employees' 2009 bonuses and will not pay any merit increases for its North American salaried employees next year. (full story here)

Well, I really don’t know if that gesture (or more appropriately, expressed commitment to the US Congress) will really have an impact on the financial crisis these giant car makers are facing. I understand that the recession has greatly affected their business’s viability and stability. I wonder if that is only a part of the reason. Most likely, business common sense, mismanagement and failing to anticipate the chipping-away of a large chunk of the automotive markets by Korean and Japanese carmakers. Of the first two reasons, I must admit, they are purely speculative and based solely on observations. I could be right though. Because that is what we all, saw that happened with AIG and with the other financial institutions of similar stature a few months ago.

In small business context, will you take the same initiatives or risks?

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About the Author

Nor Franco is the Managing Director and Virtual CEO of nextManager.net. He's a former corporate executive whose passion is bringing out the full potential of HR in Businesses. This time that passion is pursued through Virtual Management. He writes and blogs about his management views and insights here. Follow him on Twitter.