To give you an idea, General Motors and Chrysler have already reduced their CEO's salaries, Rick Wagoner and Robert Nardelli, to $1 per year. Ford CFO Lewis Booth earned $4.74 million in 2008, down 54 percent compared to the year before while Mark Fields, president of the Americas, earned $4.83 million, down 42 percent.
According to the same source, Mulally earned $21.67 million in 2007, with overall cash compensation falling 78 percent in 2008. His basic salary was reduced to $2 million, similar to 2007, with no bonus for the whole year. He won't get a bonus this year as well, Autonews said.
"Ford is acutely aware that current economic conditions have had a significant adverse impact on our shareholders, customers, dealers, employees and other stakeholders," the company said.
"We do not view these actions as merely symbolic, but as a necessary step in the restructuring of our business in which all our stakeholders have been asked to participate."
In addition to the Mulally's salary cut, Ford also announced three other cost-cutting measures as it follows: it will eliminate 2009 increases for employees in the United States and overseas, it will drop annual incentive compensation program for employees across the world and won't provide cash compensation to board members this year.
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