Ford makes UAW contract offer

[EcoVert]

But hire a CEO without a fair market compensation and you won't have a company

All CEOs are way over payed

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[marcekb]

I'm not saying not pay Farley he's not the only one of the top brass making a very good pay day. Ford made 23.66 billion dollars last year after losing 3 billion on EVs. I'm saying Ford could be more generous after doing the recession UAW workers gave a lot back.

No doubt. Their current offer is impressively generous. Doesn't look like they were trying to low-ball their employees. They have a business to run though, and I'd love to see the data anyone has that says the employees should be paid even more. Not saying it isn't true. Just think we don't have the data or the bigger picture.

 

[marcekb]

All CEOs are way over payed

Okay, all rationality is out the window and the argument is completely lost on that comment.

 

[Q6543]

Agreed we need a CEO tied to lowest payed worker multiple.

i.e. CEO can’t make more than 100X lowest paid employees.
Things would straighten out REAL QUICK.

 

[BlackFerret69]

Latest from Ford:

https://media.ford.com/content/ford...aw-contract-offer--significant-pay-incre.html

Compared to last contract:

 

[gearhead350]

Ford’s proposal looks pretty similar to the 2019 agreement. Just looks like they shifted the money around to get the same basic endgame. We’re in a whole different world than we were in 2019. Ford knows that and will bring something a bit better when the deadline arrives

 

[marcekb]

Agreed we need a CEO tied to lowest payed worker multiple.

i.e. CEO can’t make more than 100X lowest paid employees.
Things would straighten out REAL QUICK.

Are you willing to say the lowest paid employees should never make more than 1/100 of the CEO? What if the CEO makes $100k? Or $1M? Should the CEO simply outsource labor? No entry level jobs with opportunity to grow with a strong company? Manipulating the market for no other benefit than to make someone feel better about the disparity of work they do is silly. Why not make it 50x lowest? Or simply make it 1:1. There's no logic here.

 

[marcekb]

We’re in a whole different world than we were in 2019. Ford knows that and will bring something a bit better when the deadline arrives

We're always in a world different than a year ago or even yesterday. If the UAW weren't here, hypothetically, Ford would still pay what it takes to retain employees (or go out of business). We have a system far different than 100 years ago and employees are very well protected. I'm not opposed to the union, but let's not drive American companies overseas either.

 

[Q6543]

Are you willing to say the lowest paid employees should never make more than 1/100 of the CEO? What if the CEO makes $100k? Or $1M? Should the CEO simply outsource labor? No entry level jobs with opportunity to grow with a strong company? Manipulating the market for no other benefit than to make someone feel better about the disparity of work they do is silly. Why not make it 50x lowest? Or simply make it 1:1. There's no logic here.

If the CEO makes 1M it’s likely a company of 1-5 people
100x was an arbitrary number. In the US the average CEO earns 400X their average employee.
That gap needs to close.

 

[marcekb]

If the CEO makes 1M it’s likely a company of 1-5 people
100x was an arbitrary number. In the US the average CEO earns 400X their average employee.
That gap needs to close.

Why does that need to change? Just trying to understand the data and where this comes from. Someone will always make more money than someone else. Who gets to set pay for all employees? A communist government?

 

[Q6543]

Who gets to set pay for all employees?

The board of directors, and they are trying to maximize earnings while minimizing labor costs.
They will never have the employees best interest as it isn’t in their mandate.
Hence the need for unions and or regulations.

it’s from the economics institute.

 

[marcekb]

The board of directors, and they are trying to maximize earnings while minimizing labor costs.
They will never have the employees best interest as it isn’t in their mandate.
Hence the need for unions and or regulations.

That wasn't my question. In your world, who gets to do it? The communist government? The employees who can't run a company? The customers who don't want to pay for things? How do you justify in real world outcomes (not made up ideas that sound good in a vacuum) letting someone else make these decisions?

 

[Rate_of_Twist]

What is Jim Farley salary?


Farley's base salary remained unchanged at $1.7 million, while his stock awards and non-equity incentives dipped slightly. The company said his 2022 compensation amounted to 281 times the median total compensation of all Ford employees. Farley earned $22.8 million in 2021.Mar 31, 2023

Ford CEO Jim Farley's 2022 compensation falls slightly to $20.9M

autonews.com
https://www.autonews.com › executives › ford-ceo-jim-

$28,979,570

GM CEO Mary Barra's 2022 compensation: $28,979,570But other top brass came in either flat against or slightly below their 2021 total compensation. All the executives earned smaller bonus payments due to increased aggressive financial targets set by the board of directors at the end of 2021.Apr 28, 2023

Part of the reason this ain't going to fly. Though not a slap in the face like Stellantis offer the people who make the money for these salaries want to share in the wealth.

Assuming you were qualified ( and assuming Farley is qualified, which is debatable at best)

What would you expect as compensation package for leading a company worth billions that employs 170k+?

I’ll never make it, but $20m hardly seems unreasonable.

 

[marcekb]

And, although I'm not advocating for it for the same reason I question it, why not pay CEOs 800 or 1000 times the lowest? I just don't understand general statements about pay like this.

 

[Q6543]

There isn’t any one making a decision like that currently. Which is part of the problem.

You make a good point as these are difficult issues that need solutions.
Perhaps A.I. can guide us over time.
Quantum computing to run all possible scenarios and outcomes.
Then we will be able to actually know what is best.

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