Now that Americans have footed the bill for more than a trillion dollars in bailouts, Congress is finally starting to clamp down on executive pay as a condition for a bailout.
AP reports, "Some members of Congress have urged the Big Three executives to take major pay cuts as part of the deal. Chrysler Chief Executive Robert Nardelli said he would work for $1 a year, and a similar commitment is expected from GM CEO Rick Wagoner. Ford plans to include a pay cut for Ford CEO Alan Mulally, although the size of the cut was not immediately available."
Just this morning, Ford's CEO said he would take $1 a year in pay if Ford got bailed out. Chrysler and GM's CEOs joined the salary-reduction pledge as well.
Ford Motor Co. will tell Congress that it plans to return to a pretax profit or break even in 2011 when its CEO appears before two legislative committees this week.
Also, CEO Alan Mulally said he'll work for $1 per year if the automaker has to take any government loan money.
The plan Ford is presenting to Congress this week also says it will cancel all management employees' 2009 bonuses and will not pay any merit increases for its North American salaried employees next year.
Other cost-cutting actions include a plan to sell Ford's five corporate aircraft, the company said.
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