FoMoCo CEO Alan Mulally and Executive Chairman Bill Ford Jr. have voluntarily taken a 30 percent pay cut to show UAW workers that they aren’t the only ones being asked to make sacrifices.
In a company e-mail sent out Tuesday, Ford said that it will be eliminating bonuses for all salaried workers for the second year in a row and will be suspending cash compensation for its board members. The move is being made to meet the company’s goal of returning to profitability by 2011.
“Both of us have voluntarily agreed to accept a 30 percent reduction in salary for 2009 and 2010,” Mulally and Ford Jr. said in the memo. “We know these are challenging times and we all are affected by the tough actions we are taking.”
Ford’s announcement comes as UAW workers get ready to vote on major changes to their contract with FoMoCo which includes new concessions along with another round of buyouts for U.S. hourly workers. Those taking the buyout will get between $20,000 to $50,000 depending on their job. They will also receive a $20,000 or $25,000 voucher that can be used to buy a new Ford vehicle.
Source: Detroit News