Ford Motor Co (NYSE:F) Chief Executive Alan Mulally has had his overall compensation package boosted by 48 percent to $26.5 million in 2010, on the heels of the company's best net profit performance in 10 years.
Not only has Mulally received credit for turning things around, but for doing in the throes of the worst economic downturn in America since the Great Depression. Add to that his ability to do it without being bailed out by the U.S. government like General Motors (NYSE:GM) and Chrysler had to be, and it's an even more impressive accomplishment.
While the union is already whining about this, much of the problems in the auto industry are the result of them being overpaid, pushing the price of vehicles up beyond the ability of consumers to pay.
Any time there is a bump in the economy, the auto industry is crushed because of that fact.
Now wages and benefits are finally falling to the place where it may be manageable and sustainable over time.
What the unions need to do is thank Mulally for saving their rear-ends in spite of them being the problem.
Executive chairman Bill Ford also had a big bump up in compensation, rising 57 percent to $26.4 million. That includes a salary of $4.8 million. Some of that salary was deferred from 2008 and 2009.
For Mulally and Ford, each had a base salary of $1.4 million in 2010, which will jump to $2 million in 2011.
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