Ford Motor Company is back. As proof, Ford Motor Company’s CEO Allan Mulally was awarded bonuses totaling $13.8 million, according to documents submitted to government regulators this week.
Skin in the game
According to a Reuters report, Mulally’s holdings in Ford stock are worth approximately $96 million. Mulally’s holdings should mollify critics who complain that too many CEOs don’t have a personal stake in the companies they run. Owning Ford stock worth $96 million, however, qualifies as having “skin in the game.”
Is he worth it?
For those who don’t follow the auto industry closely, Allan Mulally is widely credited with rescuing Ford Motor Company from what looked like certain bankruptcy. Mulally was recruited away from Boeing Aircraft Company by then-CEO Bill Ford, Jr. in 2006 -- when Ford’s losses were mounting and sales volume and market share were shrinking.
That was before the financial meltdown in 2009 and a $4.00/gallon spike in gasoline prices which cratered sales of Ford’s most profitable products, SUVs and pickups. Ford’s lowest point came in 2009 when the company lost a record $13 billion. Ford avoided bankruptcy but General Motors and Chrysler did not and needed federally guaranteed loans to stay in operation.
Mulally recently reassured Ford’s board of directors that he will not jump to Microsoft, a topic of intense media speculation. What fueled that speculation was the retirement of Microsoft CEO Steve Ballmer and the fact that Microsoft's headquarters are in Redmond, WA, just east of Seattle. Mually served in key management posts at Seattle-based Boeing Airplane Company from 1969 until he left to join Ford Motor Company in Dearborn, MI in 2006. Mulally has family in Seattle and maintains a residence there.
Read more about Ford’s turnaround under Allan Mulally’s leadership: