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boeingfever777
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Posts: 1990
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Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:03 am

For CEO Spouses, Corporate Jets Are the Perfect Perk

Looks like Alan's family is flying first class on Ford Motor's dime!

Personal flights by Mr. Mulally and family members cost Ford $172,974 during his four months with the auto maker last year.

WOW!  Wow!

Along with his 28.2 million$ salary last year id say he is doing "ok."
Faire du ciel le plus bel endroit de la terre.
 
agill
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:05 am

Quoting BoeingFever777 (Thread starter):
id say he is doing "ok."

More than you can say about Ford I guess.
 
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fxramper
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:05 am

Until recently, so too could Diane Smith, wife of FedEx Corp. founder Frederick W. Smith. A new FedEx policy adopted in March requires Mr. Smith to pay for most "incremental" costs of his and family members' personal flights, a company spokesman says.

Way to go Fred!  yes 
 
boeingfever777
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Posts: 1990
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:13 am

Quoting FXramper (Reply 2):
Until recently, so too could Diane Smith, wife of FedEx Corp. founder Frederick W. Smith. A new FedEx policy adopted in March requires Mr. Smith to pay for most "incremental" costs of his and family members' personal flights, a company spokesman says.

Weird... Maybe Ford needs to adopt that policy.

He is the founder of Fedex... Last I checked his companies stock trades for 111.00/per share and had 32.294 billion$ in revenue and 1.819 billion in net profit in 2006. I would see no issue with him using a comapny jet for free when they make that kind of green in MEM.

I believe Ford was what... -12.6 billion$ in the red for 2006?
Faire du ciel le plus bel endroit de la terre.
 
PPVRA
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:21 am

I've heard that this is quite common, it's like a pay raise but you don't pay income tax on it.

(cheaper for the company, cheaper for the CEO)

[Edited 2007-07-04 22:21:54]
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
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fxramper
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:40 am

from article

one of Ford Motor Co.'s Falcon twin-turbo jets.

When did Ford get rid of their BBJs? Was it to save money?

 
ChiGB1973
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Joined: Mon Mar 22, 2004 6:39 am

RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:46 am

Quoting PPVRA (Reply 4):
I've heard that this is quite common, it's like a pay raise but you don't pay income tax on it.

(cheaper for the company, cheaper for the CEO)

[Edited 2007-07-04 22:21:54]

While I do not doubt ways around, it is supposed to be taxed as income.

M
 
eirbus06
Posts: 166
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:58 am

Which would be cheaper for the company? First class travel or Private jet?

Quote:
Ford Motor Co.'s Falcon twin-turbo jets.

Next move for mulally is a BBJ order to boeing? lol lol  dollarsign   dollarsign 
 
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LN-MOW
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 6:09 am

Quoting FXramper (Reply 5):
When did Ford get rid of their BBJs?

They weren't BBJ, but regular -705's. They're now with Southwest.
- I am LN-MOW, and I approve this message.
 
OldAeroGuy
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 8:23 am

The title is a bit misleading. While Mr. Mulally was head of the BCA (Boeing Commercial Aircraft), he was never the Boeing CEO. If he had been, he probably would not have moved to Ford.
Airplane design is easy, the difficulty is getting them to fly - Barnes Wallis
 
boeingfever777
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Posts: 1990
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 8:38 am

Quoting OldAeroGuy (Reply 9):
The title is a bit misleading. While Mr. Mulally was head of the BCA (Boeing Commercial Aircraft), he was never the Boeing CEO.

http://media.ford.com/article_display.cfm?article_id=24203
Prior to joining Ford in September 2006, Mulally served as executive vice president of The Boeing Company, and president and chief executive officer of Boeing Commercial Airplanes. In that role, he was responsible for all of the company's commercial airplane programs and related services. Mulally also was a member of the Boeing Executive Council and served as Boeing's senior executive in the Pacific Northwest.

Anyone that knows Boeing knows that he was the CEO of BCA and was thought to replace Stonecipher when he and Ms. Peabody had relations but was passed for current CEO James McNerney of 3M.
Faire du ciel le plus bel endroit de la terre.
 
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fxramper
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 9:00 am

Quoting LN-MOW (Reply 8):
Quoting FXramper (Reply 5):

When did Ford get rid of their BBJs?

They weren't BBJ, but regular -705's. They're now with Southwest.

Ford did own two BBJ's. They are with the Air National Guard now. I just didn't know when they were sold...
Southwest Buys 737 From Ford Motor Company (by DTW757 Aug 30 2006 in Civil Aviation)
 
OldAeroGuy
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 9:00 am

Quoting BoeingFever777 (Reply 10):
Anyone that knows Boeing knows that he was the CEO of BCA and was thought to replace Stonecipher when he and Ms. Peabody had relations but was passed for current CEO James McNerney of 3M.

CEO of BCA and CEO of Boeing (The Boeing Company) are not the same thing. Within the Executive Council, Mulally was an Executive Vice President. Condit, Stonecipher, and McNerney were Boeing CEO's during Mulally tenure as head of BCA.
Airplane design is easy, the difficulty is getting them to fly - Barnes Wallis
 
Skip17
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 10:51 am

Hell, i don't see anything wrong with it. If he is qualified enough to get a job like that and can demand that kind of a benefit in this contract...I really don't see the problem with it. Everyone who complains about it is just jealous they don't have the ability to do it; I know I am.

The Falcon sounds nice though haha
 
MrFord
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 11:00 am

Quoting FXramper (Reply 5):
from article

one of Ford Motor Co.'s Falcon twin-turbo jets.

When did Ford get rid of their BBJs? Was it to save money?

Those were Ford Europe BBJs, Ford England IIRC...
"For radar identification throw your jumpseat rider out the window."
 
jetjeanes
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 1:16 pm

Some of freds kids and family use the corp jets,,one of them went down to an alabama game last fall in an old lear?? i didnt know they even had. and they have used one of the challengers.. Heck I can remember him flying the falcons himself
but he was still with his first wife then I dont think he can fly anymore since his heart attack.. Hes got some land down here near me and one of the kids threw a big bonfire and keg party.. I dont know if it was the one that got busted for dealing or not, but he was a good high school quarterback.
Kind of like elvis no one around here ever pays attention to how big someone else is somewhere else. They drive like everyone else does.
i can see for 80 miles
 
ANother
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 3:04 pm

So how much would 'incremental' costs be on a BBJ for one additional passenger? Costs of food/booze consumed and a little fuel. Likely less than $100 for a trans-con flight?
 
roseflyer
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 4:16 pm

Well it was part of the package to entice him to join Ford. I grew up being friends with one of his daughters and I think its pretty crazy that his kids can fly on Ford's corporate jet. Its just amazing to see how business works.
If you have never designed an airplane part before, let the real designers do the work!
 
grantcv
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Joined: Tue Apr 26, 2005 1:28 pm

RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 4:44 pm

Quoting Skip17 (Reply 13):
Hell, i don't see anything wrong with it. If he is qualified enough to get a job like that and can demand that kind of a benefit in this contract

Given the seriously bad shape Ford is in - the outrageous compensation that Alan Mulally has been getting certainly must be sending the wrong message to the employees and investors in the company. It looks more like he is taking advantage of Bill Ford's desparation rather than truly stepping up to the challenge of saving Ford.
 
speedbirdegjj
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 5:26 pm

Quoting FXramper (Reply 5):
When did Ford get rid of their BBJs? Was it to save money?



Quoting LN-MOW (Reply 8):
They weren't BBJ, but regular -705's. They're now with Southwest

They were indeed regualr 705's intially delivered to Braathens. They were used to relpace two Md-87's (VP-BOP and BON) if i remember correctly. The 87's were based at stansted and operated staff shuttly flights to Maastricht and Cologne i believe. The two 705's were often seen at STN so presume these were used for the same purpose. I read somewhere that a decline in staff movements in Europe and the Scaling down or indeed closing of some parts of the operation made it more economically viable to sell the aircraft and flt staff commercially.

Ryan
 
AirRyan
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 9:13 pm

Quoting BoeingFever777 (Thread starter):
Looks like Alan's family is flying first class on Ford Motor's dime!

Personal flights by Mr. Mulally and family members cost Ford $172,974 during his four months with the auto maker last year.

WOW!

Along with his 28.2 million$ salary last year id say he is doing "ok."

Wow, makes me want to buy Ford vehicle!  

Too bad Ford ran out of money and had to sell their 73G's to WN for lunch money (I think WN got very good deals from Ford on those aircraft!) After seeing them waste that much compensation on any one employee, I can't imagine how they'd be having money problems.

[Edited 2007-07-05 14:14:24]
 
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SLCUT2777
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 10:31 pm

Quoting RoseFlyer (Reply 17):
Well it was part of the package to entice him to join Ford. I grew up being friends with one of his daughters and I think its pretty crazy that his kids can fly on Ford's corporate jet. Its just amazing to see how business works.

A company loses $$$ big-time, yet they compensate the CEO with an 8 digit salary with bonuses. Looks as if UA's Glenn Tilton finally has some genuine competition! No wonder why Toyota, Honda and Nissan have been eating away at Ford's customer base in North America.

Quoting Grantcv (Reply 18):
Given the seriously bad shape Ford is in - the outrageous compensation that Alan Mulally has been getting certainly must be sending the wrong message to the employees and investors in the company. It looks more like he is taking advantage of Bill Ford's desparation rather than truly stepping up to the challenge of saving Ford.

If Glenn Tilton can get away with such behavior at UA, then why not Alan Mulally at Ford? After all he finished cleaning up the mess after Harry Stonecipher at Boeing when he had his mid-life crises (Romping off to PSP with another "fortieish" Boeing exec and sharing a room etc...  eyepopping  ).
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
 
AFC_Ajax00
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 10:42 pm

Alan Mulally was compensated for stock options and other forms of performance incentives he would have lost out on when he left Boeing, that is the reason his pay package is so large, it is not related to his performance thus far at Ford.
Once you have tasted flight, you will walk the earth with your eyes turned skyward; for there you long to return
 
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SLCUT2777
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RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 10:56 pm

Quoting AFC_Ajax00 (Reply 22):
Alan Mulally was compensated for stock options and other forms of performance incentives he would have lost out on when he left Boeing, that is the reason his pay package is so large, it is not related to his performance thus far at Ford.

 checkmark  That said, it will be VERY interesting to see how he deals with the issues confronting Ford. One issue Ford and other domestic North American automakers face is the number of dealers. GM, Ford & Chrysler have fare more dealerships per capita than their Japan or Europe based rivals. He helped vault Boeing ahead of Airbus with the midsized/frequency based equipment such as the 777 and 787 rather than try and go for a successor super-jumbo.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
 
typhaerion
Posts: 425
Joined: Tue Jun 14, 2005 11:27 pm

RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 11:05 pm

Quoting Eirbus06 (Reply 7):
Which would be cheaper for the company? First class travel or Private jet?

If the trip was just for the family and did not align itself with other company business that required the positioning of more employees, the first class ticket will always be cheaper then the operating costs of the airframe. Hands down no contest. If they had to move a large number of employees, or had fractional ownership of the jet in question through Marquis or NetJets proper, maybe not.

In all reality, look at the cost of av gas now and compare a 30,000 lbs fuel payload with the cost of a cross country first class ticket.

It just goes to show that it is no small wonder that it is hard to make a profit in the airline industry at the prices we charge.
For some, the sky is the limit. For us, it is only the beginning... -- Jack Hunt
 
YULWinterSkies
Posts: 1267
Joined: Thu Jun 09, 2005 11:42 pm

RE: Boeing Ex-CEO Flying First Class!

Thu Jul 05, 2007 11:44 pm

Quoting PPVRA (Reply 4):
it's like a pay raise but you don't pay income tax on it.

(cheaper for the company, cheaper for the CEO)

... and as a result more expensive for us taxpayers...  Angry

Quoting ChiGB1973 (Reply 6):
While I do not doubt ways around, it is supposed to be taxed as income.

True, it is supposed to be, the world is not as bad as some powerful people would like it to be...
When I doubt... go running!
 
bhill
Posts: 1883
Joined: Thu Sep 13, 2001 8:28 am

RE: Boeing Ex-CEO Flying First Class!

Mon Jul 09, 2007 7:55 am

What a cheap putz..he makes 28 mill, and stiffs Ford for 172 k...CHEEEEP!!!!
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