Ford US Boss's $1m Flying Perks Grounded

[XA Coupsta]

Article as seen on SMH.com.au

Rather 'nice' of him to stop using the company jet isnt it - specially when he's proposing to cut 45,000 jobs.

Article here - http://www.smh.com.au/news/business/...095944973.html

Ford boss's $1m flying perk grounded

Mark Fields ... corporate jet setting days are numbered.

The head of Ford Motor Co's money-losing North American operations - who is overseeing plans to shed more than 45,000 workers - told employees that he had given up use of a corporate jet for personal travel, an expensive benefit that had come under fire.

Mark Fields, Ford's president of the Americas, had been granted personal use of a company jet under the terms of an employment contract signed when he took over responsibility for Ford's restructuring in late 2005.

Fields' trips from Detroit to his home in Florida became controversial in recent weeks after the provision in his contract was highlighted by a Detroit television station and challenged at a time when the carmaker is losing billions and slashing jobs.

The cost of flying Fields for the fourth quarter of 2005 was $273,065, according to a proxy statement filed by Ford with the Securities and Exchange Commission in April. The carmaker has not yet disclosed the cost for 2006.

In 2005, Fields and then-Chief Executive Bill Ford Jr were the only Ford executives permitted to use the company aircraft for personal travel.

Fields, 45, told Ford employees in a webcast on Thursday that he would no longer use a corporate jet for personal trips, a company spokesman said.

"He has made a decision not to use company aircraft for personal travel," said Ford spokesman Tom Hoyt. "He did not want that issue or any other issue to distract the North American team."

Hoyt said Fields would use commercial aircraft to fly from Detroit to his permanent home in Florida and the company would pay for his flight.

Fields's use of a company jet was featured in a series of reports on automotive executive benefits by WXYZ-TV in Detroit late last year and became the topic of a critical editorial in the trade publication Automotive News.

Ford Chief Executive Alan Mulally, who was lured away from Boeing Co to head the carmaker in September, also was questioned recently by Ford dealers about the practice.

Hoyt said the decision to stop using the company plane had been a "personal decision" by Fields.

Fields is overseeing a restructuring that calls for the closing of 16 plants and cutting of nearly 45,000 workers.

Ford lost $US7 billion ($8.9 billion) during the first nine months of 2006 and further losses are forecast in the October-December period quarter and beyond.

By Ford's own estimate, its North American unit will lose money until 2009 and run through $US17 billion cash in the next three years.

Reuters

[4.9 EF Futura]

*meh* it was part of his contract that he could use it... you cant criticise him for that. A good decision - both for the company and for his image... to stop using it tho IMO.

Good thing he's not in the union... or else he'd be using it til the day the company went broke lol "because he's entitled to it!!!"

[gozza]

lol @ ef

[drcook]

and the ship continues to sink.

[XA Coupsta]

4.9 EF - you arent a high paid Executive with these types of perks are you?! lol

I personally cant see how those types of perks can be defended when the company itself is bleeding red ink on the balance sheets. Not to mention shedding jobs of which might be able to be saved if the 200 odd k is spent on staff retainment instead of on a corporate jet.

Sure.......it is part of his package - no dispute there. Obviously a conscience is not part of it.

He would have a six figure salary - which is more than enough for him to foot the bill for his PERSONAL requirements to travel (for which the company jet was being used).

[ClevlndStemer]

i'm with 4.9 EF on this, he was entitled to use it but stopped. How many others would do the same?

[335JET]

if i were the boss of FORD, my corporate jet wouldent be a plane, rather the latest BLOWN Mustang being produced.
Could you imagine what mods you could do with that salary.

[xbgs351]

Sounds like a case of 'Look after the pennies and pounds will look after themselves'. If Ford is adopting this as a corporate philosophy things will rapidly go from bad to worse.

[RIPGMH]

Its a token thing, even with the company in the state it is 200k is not a big deal to FOMOCO, its those stupid pension plans that are killing them.

[StookEB]

Originally Posted by RIPGMH

Its a token thing, even with the company in the state it is 200k is not a big deal to FOMOCO, its those stupid pension plans that are killing them.

What the actual high up executives pention plan?

They reckon they'll only lose money until 2009.
Lets see how there next gen of cars bring them.

[4.9 EF Futura]

Originally Posted by XA Coupsta

4.9 EF - you arent a high paid Executive with these types of perks are you?! lol

Lol... does the free beer in economy class count as a perk?

He would have a six figure salary - which is more than enough for him to foot the bill for his PERSONAL requirements to travel (for which the company jet was being used).

Ways of the corporate world hey... the only people who have their expenses paid... are the ones that dont need it... kinda makes me laugh..... then dry reach... then feel a little tired. lol.

Give him the personal jet or throw another hundred grand on the pile... he'll get the compensation some way or another.

Question (let's assume im playing devil's advocate here):

If one looks at the corporate world's typical response to these matters, the repsonse is usually along the lines of "we need to pay lots of money to get the right people for the job" (which, to some extent, has an element of validity IMO).

So.

If the fortunes of the Ford Motor Company - and its remaining employees (still talking a LOT of families dependant on this company coming good) rest upon the brains trust of executive managment.... is there not a good case to spend up, get the right man for the job, maybe turn this ship around??

Or should you lowball someone from the CEO market, save 1% of the company revenues... and risk the fact that you might not get the expertise/experience you need?

[RIPGMH]

Originally Posted by EArulz

What the actual high up executives pention plan?

They reckon they'll only lose money until 2009.
Lets see how there next gen of cars bring them.

Maybe a cull for retired execs, that will wrap up around '09. out:

[Poetic Justice]

It's a good show of merit that he stopped doing it but I must ask:

If he earns say $3m per year, and in 1 year spent $265k or whatever on the company jet - it seems bad for a company who is struggling.

BUT

If he earnt $3.26m per year, would there be an uproar?

[RPO83]

Mark will be compensated for this through a better stock option plan, as he should. You don't get the best top level executives if you don't spend the money to lure them.

[old_phoon]

In CEO's / Executive maangement teams you do NOT necessarily get what you pay for!
There was an article in ther Australian a couple of weeks ago discussing this topic. It showed that although many companies have "high priced" exec's CEO's, the companies did not perform as well as they should / expected to.
High cost = high performance is spin-doctoring at its best

[Slow Ute]

Originally Posted by blackout

It's a good show of merit that he stopped doing it but I must ask:

If he earns say $3m per year, and in 1 year spent $265k or whatever on the company jet - it seems bad for a company who is struggling.

BUT

If he earnt $3.26m per year, would there be an uproar?

i think u read that wrong, $273k for the last 1/4. thats about 1mil a year for airfares....that a lot. why didnt he relocate, would they fly a cleaner in from canada every week to work. i think not he would have to relocate, so why cant the big boss do the same. me thinks he just going to be there long enough to get his big *** salary then find some other company to rape.

[Mutley]

Originally Posted by 4.9 EF Futura

Lol... does the free beer in economy class count as a perk?



Ways of the corporate world hey... the only people who have their expenses paid... are the ones that dont need it... kinda makes me laugh..... then dry reach... then feel a little tired. lol.

Give him the personal jet or throw another hundred grand on the pile... he'll get the compensation some way or another.

Question (let's assume im playing devil's advocate here):

If one looks at the corporate world's typical response to these matters, the repsonse is usually along the lines of "we need to pay lots of money to get the right people for the job" (which, to some extent, has an element of validity IMO).

So.

If the fortunes of the Ford Motor Company - and its remaining employees (still talking a LOT of families dependant on this company coming good) rest upon the brains trust of executive managment.... is there not a good case to spend up, get the right man for the job, maybe turn this ship around??

Or should you lowball someone from the CEO market, save 1% of the company revenues... and risk the fact that you might not get the expertise/experience you need?

In my experience, higher salaries often don't equate to superior performance. We hear this argument often where you should be paying the CEO $6,000,000 PA to get results.

Well perhaps the board, on behalf of the share holders, should be asking the CEO to lead by example. History is littered with examples of leaders who have led by example and turned things around.

[GK]

Originally Posted by old_phoon

In CEO's / Executive maangement teams you do NOT necessarily get what you pay for!
There was an article in ther Australian a couple of weeks ago discussing this topic. It showed that although many companies have "high priced" exec's CEO's, the companies did not perform as well as they should / expected to.
High cost = high performance is spin-doctoring at its best

Agreed!

Originally Posted by 4.9 EF Futura

Ways of the corporate world hey... the only people who have their expenses paid... are the ones that dont need it... kinda makes me laugh..... then dry reach... then feel a little tired. lol.

It's the way of the world for the rich, famous and somebodies!

It really sickens me.

Originally Posted by RPO83

Mark will be compensated for this through a better stock option plan, as he should. You don't get the best top level executives if you don't spend the money to lure them.

Rubbish! All those packages lure to huge companies is greedy and corrupted people. How many CEOs are acutally servants of their workers and shareholders. How could you not be corrupted by such a salary?

I bet you're going to argue now that he needs some performance bonuses as well. Give me a break!

GK

[RPO83]

Originally Posted by GK

Agreed!




It's the way of the world for the rich, famous and somebodies!

It really sickens me.



Rubbish! All those packages lure to huge companies is greedy and corrupted people. How many CEOs are acutally servants of their workers and shareholders. How could you not be corrupted by such a salary?

I bet you're going to argue now that he needs some performance bonuses as well. Give me a break!

GK

He deserves every cent he gets for what he has done for the company, his turning around of Mazda alone is proof of his skills. I know I made a blanket statement regarding pay and performance, not all are worthy of their salaries, but others are.

[Outbackjack]

Over paid executive that almost killed a company and still walked (pushed) away with millions..... Carly Fiorina.

[Jayden]

Big, and I mean rediculously BIG salaries sicken me, they should be paid once at the end of the year based on how well they performed in the circumstances, that means they could get money even if the company loses.

But when they just reap in lots of rewards and benefits while the company spirals out of control like a commodore with a P plate, its just plain wrong as.

not necessarily Mark Fields, but rather all the countless others that take 500% more than they give.

[GK]

Originally Posted by RPO83

He deserves every cent he gets for what he has done for the company, his turning around of Mazda alone is proof of his skills. I know I made a blanket statement regarding pay and performance, not all are worthy of their salaries, but others are.

I still cannot understand the greed and lunacy of the corporate world. Would you expect me to do a better job for you if my wage went up from 1million to 2million? Would my performance have to be twice as good?

If you then had to reduce my salary to $250,000 would I work half as hard, or half as diligently?

I just reckon the salaries for these executives are disgraceful. The boardmembers all sit on each other's salary advisory boards and jack up each other's pay. Disgusting. We actually see a scaled down version of it (but no less corrupt IMO) in parliament. Their superannuation pay for instance is disgusting.

It's always been that way. The haves dictate how much the have nots get but ensure that they themselves are paid handsomely.

The corporate world is awash with greed and corruption.

Interestingly enough, job surveys, time and time again actually show that the most satisfied workers are unpaid volunteers. I think that says something.

GK

[RPO83]

I wonder how corrupt Geoff Polites is...

[Falcon Coupe]

Originally Posted by RIPGMH

Its a token thing, even with the company in the state it is 200k is not a big deal to FOMOCO, its those stupid pension plans that are killing them.

I would point the finger at the ugly Crown Victoria. e

[Bossxr8]

Originally Posted by RPO83

He deserves every cent he gets for what he has done for the company, his turning around of Mazda alone is proof of his skills. I know I made a blanket statement regarding pay and performance, not all are worthy of their salaries, but others are.

Exactly. His rebuilding job on Mazda was legendary. He deserves every cent he gets paid cause he gets the job done.