Monday, January 29, 2007

Ford Resume Executive Bonuses

Get this. Ford loses the most money in its history and wants to give bonuses to the executives that made it happen. This, according to Bloomberg . Maybe I should start a bankruptcy watch for Ford.
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, said the people, who didn't want to be identified because the discussions are private.

Ford paid no bonuses to its top 6,000 executives during the last two years. Ford's net income shrank to $1.44 billion for 2005. Ford said today it lost $5.8 billion in the fourth quarter and $12.7 billion for 2006, the biggest annual loss ever. The company is cutting 40,000 factory and white-collar jobs in hopes of restoring North American auto profits in 2009.

Restoring the bonuses may alienate the United Auto Workers union and its president, Ron Gettelfinger, in advance of midyear contract talks. ``Ford may be making a tactical mistake,'' said Dan Luria, an analyst at the Michigan Manufacturing Technology Center in Plymouth, Michigan.
A tactical mistake?!? You think?


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