How much does the CEO's salary add to the cost of a car?

[ColbertWatcher]

The big stink from the mindless sheeple is to repeat the GOP-controlled media's lie that the union workers add $2,000 to the price of every car.

Well, how much does the CEO's salary add to the cost of the cars?

Let's take Ford for example.

According to http://www.ford.com/doc/2007_ar.pdf">Ford's 2007 Annual report, they sold a total of 2,836 units in North America in 2007.

Their CEO Alan Mulally received just over http://investing.businessweek.com/businessweek/research/stocks/people/person.asp?personId=370889&capId=106335&previousCapId=106772&previousTitle=Daimler%20AG">$6 million that year.

Now, if we apply GOP "logic" to these figures (divide $6,000,000 by 2,836) and we find how much the CEO's salary added to each car:

$2,115.66

Apparently, the sheeple would rather have one guy working than 2 million.

[whippo]

1. Ford only sold 2,800 vehicles in 2007? No wonder they are in trouble.

[JVS]

2. Yeah! Those sales suck!

[JVS]

3. Oh, each unit is 1,000 cars. So we can divide the answer above by 1,000 for the proper number,

[ColbertWatcher]

7. Yeah, and Mulally's total compensation was actually $21,670,674 for 2007.

And that's not including the legacy costs of previous CEOs.

[NewJeffCT]

20. That bastion of the liberal media - the Wall Street Journal -

did a study that said almost all of the increase in the big 3 automakers' pension costs is related to increases in executive pensions, which are not required to be broken out from regular pensions.

[JVS]

4. Wrong. $2.12

The PDF linked points out that each unit is 1,000 vehicles.

[ColbertWatcher]

5. Hmm. Now, I wonder how the sheeple came up with their numbers? n/t

[Waiting For Everyman]

6. Nobody is worth $6 million.

I don't care if he walks on water. Top salaries should be a multiple of the bottom salary... say, a max of 100 times the lowest paid tier? THEN we'd see the bottom increase. The top couldn't get a raise without raising everyone.

The Unions should get financed to buyout these companies anyway though. There's no doubt in my mind that they'd do better at running them. We could start with a seat on the Board of Directors.

[aquart]

8. The lowest paid contract subsidiary tier.

Don't give them cute outs that allow them to contract everything out at starvation wages.

BTW, when is Congress going to take a paycut...you know, to set an example?

[Waiting For Everyman]

9. And why not expect CEOs to get into "parity" with the President?

They think they're worth more than the guy who runs the whole show?

If the Repukes expect UAW workers to be in "parity" with the foreign autoworkers, then CEOs should be required to be in parity with the President. And not later, but now - as they tried to force on the UAW today.

(Evidently "parity" is their favorite word lately.)

[ColbertWatcher]

11. Yes, I really screwed this thread up.

I got the numbers wrong and forgot the word (parity).

Thank you for reminding me though!

[safeinOhio]

10. They must be thinking about

basing their pay rate on what members of the Diet in Japan make. Hey, it's a global economy and they have to compete.

[NewJeffCT]

13. What about CC Sabathia making $21 million/year?

that's 3 1/2 times the Ford CEO.

[ColbertWatcher]

17. Actually, Ford's CEO made $21 million in 2007 (see post #7) n/t

[NewJeffCT]

12. the $2.12 figure above is the correct one - however -

That does not include the likely spectacular pension benefit that the CEO has, plus any sort of stock options that can increase in value. If he got 1 million shares of stock that are now worth $2/share, and the value of those shares goes up to $6, his 1 millions shares are now worth $3 million.

and, the person that wrote the article used really shoddy research to figure that Ford only sold 2,836 cars.

However, in addition to the CEO, they should take other senior executives as well... the CFO, Executive VPs, etc.

[ColbertWatcher]

16. "the person that wrote the article used really shoddy research" That was me.

Good point about all the executives.

[NewJeffCT]

19. With stock options, his compensation is $21 million

or, equal to CC Sabathia

[NewJeffCT]

21. sorry

I figured it was in an article somewhere given the block text...

[dipsydoodle]

14. You slipped up there just a tinsy.

Ford sold 2836 THOUSAND cars in the USA. So the cost of the CEO using your basis was $2.16 / car - hardly significant.

I'm not defending the CEO's dough - just correcting your figure.

[ColbertWatcher]

15. Yeah, I iknow, but it's too late now to pretend I didn't post it wrong!

Oh well.

I still want to know how the sheeple came up with their $2,000 increase per vehicle.

[bulloney]

18. If you're comparing apples to apples, you should itemize EACH laborer's cost into the car

instead of lumping the total labor cost.

How many people have a hand in producing the component parts and assembling the vehicle? Perhaps thousands? It would figure out to pennies per worker.

[Orsino]

22. We Americans do love our royalty.

We'll line up just on the chance that one will wave at us through heavily-tinted windows.