qualityg says ... This is on heck of a CEO, most of his community work goes unnoticed - I sure hope Ford Motor makes a turn around - Mr Ford and his employees deserve it.
Bill Ford to turn down his pay
CEO won't take it until auto unit is profitable
April 7, 2005
Ford CEO's pay gets a boost
Compensation tied to automaker's increased profits
April 7, 2005 for full story go to: http://www.freep.com/money/autonews/ford7e_20050407.htm
BY JAMIE BUTTERS, FREE PRESS BUSINESS WRITER
Ford Motor Co. Chairman and CEO Bill Ford was paid $17.5 million last year -- 10 times as much as he earned in 2003 -- a dramatic increase that coincided with the company's rising profits.
In 2003, when the company earned less than half a billion dollars, Ford was paid about $1.7 million in stock and perks. He was also given 4 million stock options, which give him the right to buy shares of company stock at a set price.
Last year, the company netted $3.5 billion -- seven times the small 2003 profit -- and Ford's compensation soared.
He was paid $1.5 million in restricted stock in lieu of a cash salary, and he was given stock bonuses worth $10.4 million. That included a $1.5-million stock bonus that he is using to fund college scholarships for children of employees. (info - Mr Davidson of Guardian Industries/Owner of Detroit Pistons has the best plan when it comes to scholarships for children of employees).
He also gained $5.3 million -- on paper -- by exercising stock options, although he kept the stock he purchased. Most executives immediately sell stock acquired by exercising options.
He was also granted almost 1.6 million options in January, worth an estimated $9.9 million. But the Free Press does not count this as income until the options are exercised, because, if the stock falls and stays down, the options could be worthless.
The board said Bill Ford met or exceeded most of his goals for the year, which justified his bonus.
The committee of outside directors gave him credit for pretax profits and leadership but said he came up short on customer satisfaction and market-share goals.
The compensation committee evaluated Bill Ford and the company's performance on several aspects.
GOALS EXCEEDED: Corporate pretax income, cost performance, operational effectiveness, leadership and relationship building
GOALS MOSTLY MET: People and succession planning
GOALS PARTIALLY MET: Strategic direction
MIXED RESULTS: Customer satisfaction
GOALS NOT MET: Market share
Personally, I think Mr. Ford is a good leader. He exemplifies the definition of a leader when it comes to providing support to the community and to the employees of Ford (see above highlight on scholarships). He also is a good person who "cares" about his family and the plight of others by contributing to countless charities and non-profit organizations. So my following comments are not directed to or about Mr. Ford, but to the Goal Evaluations (not just Ford, there are many others, you know who you are).
1) Am I the only one who noticed that the "customer" is only mentioned once. And, what the heck does mixed results mean? 50% good and 50% bad, or geez, I don't know.
2) Would it be a stretch to say that if the customer was the number one goal, and the aim in strategic planning was the customer, the other goals would not have to be measured for evaluation. Also, I firmly believe that goals exceeded like Corporate pretax income, income cost performance do not matter most to the customer in their buying decisions, no wonder market share was not met.
Here is a comment that works when frustrated at a company's strategic planning ...
" I'm tired of financial bean counters/MBA pontificators who want to drain organizations of innovation, creativity and passion. Reduce it all to the bottom line, in the box, or better yet, 'paint by numbers and don't go outside the lines.' Limitations cause people to stop working, and worse yet, worry about each other as opposed to concentrating on what matters most to the customer."
Sorry, but if customer satisfaction results are mixed and market share is not met, then how can the others be exceeded. If you have to come up with "numerical" goals, at least look at them from a system thinkers perspective, and not as optimizing one goal over the others.
qualityg kudos for Mr. Ford:
Ford CEO makes surprise plant visit
Wayne Stamping worker impressed
June 11, 2005
BY SARAH A. WEBSTER FREE PRESS BUSINESS WRITER
Ford Motor Co. CEO Bill Ford surprised workers at the Wayne Stamping and Assembly Plant, which makes the small Focus car, by dropping by Friday without a security entourage and gaining some regular-guy credibility.
The move seemed to be an immediate morale booster, said Tim Phillips of Dearborn Heights, a 36-year Ford employee. "I was so pumped it was not even funny," he said. "He is such a cool guy. He was all by himself."
Ford apparently spent time talking directly with workers on the line and asking how the plant is running -- an event that a Ford spokesman described as an occasional routine for the CEO and great-grandson of the company's founder, who is practically royalty in the Motor City.
"We feel really good we've got him for a boss," Phillips said. By contrast, Phillips recalled a visit to the plant by former Ford CEO Jacques Nasser, in which he arrived with a group of security guards so large that "it was like the president was visiting."
qg says... CEOs should spend as much time with workers as they do with customers, reduce time with VP Execs. If you need to ask why, go to your MBA professors and ask them why you didn't learn this at school.
Salaries of today's CEOs and CFOs is disgusting to say the least. The only ones who should be able to make as much as they can are those (i.e., Mr. Gates, Mr. Dell, etc) who started their own company and built it up over the years. Officers of companies like GE, GMC, AT&T, MCI (or whatever your name is today), should be ashamed of yourselves. You should make no more than a reasonable % of dollars than that of your most experienced non-mgt workers.
Most of the everyday workers have been in the company for many more years and statistically produce much more than the officers who come and go as quickly as the "short-term planning and decision making they bring with them.
You fly by night officers don't own the company and more importantly you be should become servant leaders. Unfortunately, it's the status quo for our leaders to be the last ones to suffer. Five of my close friends have lost their jobs from AT&T in the last six months. All total their years of service = 104 years. They were given severance and in some cases qualified to retire.
The officers, will be receiving millions of dollars each (many have less than 10 years of service). http://biz.yahoo.com/ap/050312/at_t_merger_payments_1.html
Will someone please explain to me how this is good for the 20 - 30,000 employees (AT&T is just an example) who have and will lose their jobs? Oh yes, we will NOW have true competition, and the consumer will have choices and better prices. I would be glad to have my bill remain the same, or even be raised a few dollars to keep thousands of people working who have tax dollars to pay and consumer dollars to spend. Most of all I would like to see folks have pride of workmanship.
Where did we lose sight that companies are in business to capture market share, innovate new products and services and CREATE jobs, and more jobs!
It's management's job job to secure jobs, the problem is many can't because they lack the foresight and skills in predicting or envisioning the future in order to stay in business (how can they when they are already looking for their next empire, I mean job).
Example of Innovation and Creativity - David Brandon - Domino's Pizza Inc.
Domino's Pizza is one company that continues to Buck the trend when it comes to growth, creativity and innovation. They continue to create jobs while they capture market share (330 new stores last year). I have read a number of articles about Mr. Brandon (CEO) and in each he expresses his love for his job, company and employees. The most recent being in today's Detroit Free Press Business Section. - http://www.freep.com/money/business/brandon11e_20050411.htm
The following statement is from a few years back, but it still applies.
"Every group/team that has 10 - 12 members needs a Dennis Rodman type to create out of the box thinking and creativeness. However, they also need a Phil Jackson to provide parameters by which to operate without disrupting the "whole" team. Be wary of the 10 person Finance or Accounting Department in which fewer than half of the males have no body piercing or tattoos."
Book Recommendation - Orbiting the Giant Hairball by Gordon Mackenzie - Great Book on breaking the bonds of corporate normalcy. "Grope Good, Rote Bad" - See chapter Nine.
Mike Ilitch Hits a Grand Slam!
Mike Illitch owner of Little Caeserrs Pizza, the FOX theater, the Detroit Tigers and Detroit Red Wings hit a big home run yesterday with qulityg. qualityg loves to write about CEOs who give back to the community (i.e., Fox Theatre, youth sports, charities, etc...) and is a friend of veterans.
Mr. Ilitch traveled to Paducah Kentucky and provided Sgt. Robbie Doughty with a Little Ceasers Pizza Franchise. Sgt. Robbie lost both his legs in Iraq.
Mr. Ilitch was quoted as saying that he is "lucky to be in a position to help others." That is true Mike, but we are lucky to have you in our community.
For another great story about Mr. Ilitch go to my post at http://qualityg.blogspot.com/2006/11/veterans-day-2006-mr-ilitch-as-veteran.html