Top Management of Ford Motors Foregoes Compensation Packages

The fourth largest auto maker based on worldwide vehicle sales, Ford Motor has a socially responsible top management. Chief executive, Allan Mulally has agreed a salary cut of 30 % for this year and next as reported by the executive chairman Bill Ford

This move was followed by the announcement that the United Auto Workers allowed Ford to make contributions to the union trust for retiree healthcare. A portion of this contribution will also find its way to the Voluntary Employee Beneficiary Association trust.

Ford Motor’s broad members too agreed to forgo all compensation in cash for 2009. Bill Ford joined hands with Alan Mulally for 30 per cent salary cut for the current year and the next. The noble act of Bill Ford does not end here. His total compensation will be set aside and will be enjoyed only when there is profitability in the global auto operations.

Given that the auto industry in the global market has really felt the blow of the economic recession, such moves was only expected from the top management. Ford also announced that performance bonuses of all the global employees and the top level executives will be eliminated. However, keeping the corporate governance in view, the bonuses will be paid in March 2010.

Via: CNN