Friday, January 26, 2007

Yeah, this makes perfect sense, right?

Ford May Resume Its Bonuses to Boost Executive Morale

Ford Motor Co. may resume paying executive bonuses to boost the morale of managers battered by three rounds of job cuts and plant closings in the past five years, people familiar with the matter said.

The No. 2 U.S. automaker is considering the renewal of bonuses as a way of supporting managers coping with reduced benefits, the elimination of merit raises and the threat of job losses....

The size of the bonuses varies. They can comprise the highest percentage of total income for Ford's most senior executives. For Chief Executive Alan Mulally, who signed his own compensation agreement with Ford when he was hired in September, the targeted bonus opportunity for 2007 equals 175 percent of his base salary of $2 million, according to a regulatory filing....


I'm sure you'll be shocked to learn that this is only happening at the top of the pyramid:

The current contract with the UAW and Dearborn, Michigan-based Ford expires Sept. 14. In a Jan. 3 meeting with reporters, Mulally said he plans to ask the union's help in strengthening Ford. He said wages, benefits and flexibility in deploying workers would be issues....

Givebacks, in other words. And obviously that's not surprising. But isn't it odd how the best way to motivate rich people is always to pay them more, and the best way to motivate non-rich people is always to pay them less.

(Via Doug Krile and, oddly, PoliPundit.)

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