All Entries Tagged With: "auto executives"

Do Auto Execs Make Too Much Money?

When Ford CEO Alan Mulally was granted $56 million in stock bonuses about a month ago, UAW President Bob King was quoted as saying “I don’t think any human being deserves that kind of money.” Whether you agree or disagree with Bob King’s statement, his sentiments tap into a fairly popular belief in modern America. Many people question the compensation of the average corporate executive, and trends in executive pay indicate that the phenomenon is more prominent than ever…the average Fortune 500 CEO earned 343 times the amount that an average worker earned in 2010.

The question of executive pay in the auto industry is especially important today, as the UAW is eager to negotiate a new contract to replace the one that expires later this year. While automakers want workers to accept profit-sharing bonuses in place of pay raises, the UAW says cutting executive pay would save enough money to give workers a pay raise.

Which side is right? Should workers be happy with a bonus tied to profits while executives earn millions?