I just read this morning that the CEO of Ford was paid $28 million for the first months of the year. I realize that we are talking about someone who running a multi-billion worldwide business but that is still a very high number. Especially for the results Ford is receiving. Last quarter they lost $12.7 billion and they plan to layoff 30,000 hourly workers to help cut costs. So please explain to me why they are paying him that much money. It seems to me that he is not worth it and that almost anyone could do a better job running the company. What other job could you have where you lose money, lay off workers and make a personal fortune?
It is this type of corporate behavior that drives the anti-capitalist movement. They look at the gross unfairness of it and rightly question whether this system works or not. And at the very least it shows just why Ford and the other US automakers are in so much trouble. Maybe if they rewarded innovation and results they would make better cars and have more profit. But instead they line the wallets of those at the top while the ship continues to sink.
Lately I have been hearing all around town that the problem with Michigan's economy is that not enough Michigan residents buy American cars. In fact the Speaker of the House floated a proposal to charge more to register foreign cars then American cars. To begin with it is a stupid argument because there are not enough drivers in Michigan to make that much of a difference in worldwide demand. But it also shows that some people want us to blindly buy American first without regard to cost or quality. I am in the market for a new car and GM and Ford are nowhere near the top of my list. If they want my business they should make better cars and stop paying their CEO big bucks for doing poor work.
2 comments:
Well, if A-Rod can get $28 million per year for entertaining people with a bat and glove....
Seriously, there is no reason to pay someone that much money to run a failing company. I'm sure there are hundreds of other Executives out there that could have performed equally at the tasks for much less.
But if the top Exec at Ford had the guts to fire all the union employees and replace them all with those out there looking for jobs, I'd be inclined to reward that courage with a healthy bonus.
I'm not sure who's worse, these corrupt Execs and Boards or the corrupt union bosses that demand $40+/hr and lifetime healthcare for assembly line workers.
Charge more for "foreign cars"?! Shoot, to buy American built vehicles anymore you have to buy a Toyota.
As far as what the Ford CEO makes, a business has the right to determine what they pay their employees, even if it seams obscene.
I'm more upset that teachers keep getting pay increases when 1 in 5 Americans are illiterate since I am directly paying their saleries through my taxes. If people do not like what sports figures are making or what execs make they don't have to pay for the service than the "obscene" pay goes away.
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