Archive for July 20th, 2010

“Cleanliness is next to Fordliness.” – Aldous Huxley, Brave New World

by  

No Comments | Share/Save

Expert Perspective by Grahall’s OmniMedia Editorial Board

Being the top paid CEO in the automobile industry might not be much to crow about in our world of TARP bailouts and Japanese dominance, but for Ford CEO Alan Mulally, his take home pay is significantly greater than his U.S. and Japanese counterparts.  A  June 29th article for Auto in the News titled Ford CEO Mulally Gets Paid More Than Top Three Japanese Execs Combined  tells us that: “As the only Big Three automaker that didn’t get a bailout and fall into bankruptcy… [Ford’s CEO] Mulally has been an integral part of the Blue Oval’s ongoing turnaround, and as a result his efforts are reflected in his salary.  In 2009, Mulally reportedly earned $17.9 million in cash and bonuses. This officially makes him the world’s top-paid auto chief.”

Perhaps these seemingly huge paychecks are part of our national culture of “rock stars” where entertainers, athletes and, maybe even CEOs are paid because they are the product.  No question that a company’s CEO isn’t your average “Joe”, and it is clear that Mulally is, if not “the product” per se, he has become at least a hero of sorts for the Ford Motor Company.
Continue reading ““Cleanliness is next to Fordliness.” – Aldous Huxley, Brave New World” »

Filed under: Expert Perspective - Rewards



Caveat Emptor

by  

No Comments | Share/Save

Expert Perspective by Grahall’s OmniMedia Editorial Board

Kevin Crowley’s July 12th article in Bloomberg announcing the planned acquisition of Hewitt Associates by Aon (Aon to Purchase Hewitt for $4.9 Billion in Cash, Stock) sparked a lively conversation amongst our Editorial Board members.  Aon is, as Crowley says: “…the world’s largest insurance broker” and Hewitt “…provides payroll and consulting services to 3,000 clients.” 

Upon the announcement, Aon’s shares initially dropped by 10% but both Aon’s and Hewitt’s stock prices are up slightly for the week.  For Aon, this result might be based on the strength of an upgraded rating from “hold” to “buy” by Bank of America Merrill Lynch analyst Jay Cohen. 

But other than some possible anxiety on the part of Aon shareholders, what does this acquisition suggest? 
Continue reading “Caveat Emptor” »

Filed under: Expert Perspective