Executive Salaries Slashed...for Chief Must Exist on $5 Million

All top auto company executives operate with "performance clauses" in their compensation contract. If they sell XXX cars the boss and his team make more money, however, a decline in earnings at Ford and GM has resulted in key top officials taking a pay cut. There are those of us who wonder, facetiously whether the company chieftans can get along on cutbacks to $5 million per year. Big joke. No. The Board of directors approves these megabuck contracts and pay scales and do so only if the bosses perform per their agreements. The company sells more cars, the shareholders receive dividends...everyone is happy to pay for someone to ramrod these accomplishments.

COMPENSATION PACKAGES 1995

FORD
Alex Trotman     $5,431,354    down   $5 million
Wayne Booker     $1,967.116    down   $1.6
Ed Hagenlocker   $2,263,155    down   $2 million
Lou Ross         $2,379,853    down   $2 million
Ken Whipple      $2,095,520    down   $2 million

GENERAL MOTORS
Jack Smith       $5,500,000    down   $693,000
C.M.Armstrong    $2,852,000    NA
Lou Hughes       $2,850,000    up     $100,000
Harry Pearce     $2,850,000    up     $100,000
Rick Wagoner     $2,850,000    up     $100,000

How would you like to receive a weekly paycheck of $100,000 ? That's ten grand per day.

Bill Maloney -- The Auto Channel