Ford Motor Co. Chairman Bill Ford and CEO Alan Mulally have agreed to cut their salaries by 30 percent this year and next as part of a drive to show that the automaker’s senior ranks are sharing in the sacrifices demanded from lower-level workers, reports the Financial Times.
Ford and Mulally said in a memo yesterday that “we know that success will require working together by all parties.”
Mulally has said that he would accept the same salary cut if Ford took the government money. Ford has applied for access to taxpayer funds, but has so far not drawn any.
Ford, the great-grandson of the company’s founder, said yesterday that he would continue—as he did last year—to set aside compensation due to him until Ford’s global operations return to profitability. He has not received any pay since 2005.
Ford and the United Auto Workers union reached a tentative deal this week for the company to make up to half its contributions to a new union-managed healthcare fund in the form of shares rather than cash.