Posted on 12/02/2008 5:15:14 PM PST by Rufus2007
It may have been nothing but a publicity stunt, but it didn’t come cheap for Ford Motor Company CEO Alan R. Mulally.
After being embarrassed in front of a congressional committee for flying in a private jet to ask Congress for a bailout, Mulally revealed he would make the 525-mile trip from Detroit to Washington in a Ford Escape Hybrid – a trip totaling nine hours. Despite the perception that a private jet is some sort of lavish wasteful mode of transportation for the affluent – it makes more financial sense for the shareholders of Ford (NYSE:F), as CNBC’s Jeff Macke pointed out on the Dec. 2 “Fast Money” broadcast.
Macke, using AAA data, determined that making the trip in the Ford Escape Hybrid it would cost $30.42 in gas, $9 for two stops for food (McDonald’s and Dunkin’ Donuts), $21.25 in tolls and an astounding $23,424.66 in lost wages for Mulally, who made $22 million last year in salary. That’s slightly higher than the $20,000 it would cost to charter a private jet according to Macke.
..more (w/video)..
(Excerpt) Read more at businessandmedia.org ...
The whole “private jet” thing was an asinine focus by the drive-by press. The CEO’s travel in private jets wherever they do business. Its efficient and consistent with others who come to DC to testify.
Figure out how much Ford lost per hour while he was “working”. While he was driving (not working), maybe Ford didn’t lose as much.
Oh, these guys can’t work in the car? Come on. You know every one of these execs was on the phone, blackberry, laptop the whole damn time.
THEY DON’T NEED JETS. Jets are ego strokers.
I'm calling BS on the $11 part. DC cabbies rip you off with their zone system.
These guys had DRIVERS. They all were perfectly free to use their blackberrys.
Corporate Jets are EGO STROKERS and NO COMPANY should get a tax deduction for such a useless asset used to ferry EGOTISTICAL CEO’s around.
I don’t really have a problem with them traveling in jets, but they could have “jetpooled” being as how they were leaving and returning from common destinations.
Cut the BS. No way can you add in an hourly rate for the overpaid exec.
a direct commercial flight seems the most sensible answer. i know of wealthy
businessmen who fly coach because the money is coming from the business
they sweated to build.
DCA to the Capitol is $1.70 on the Metro. ;)
What are you, a Luddite?? For crying out loud, executives work 18 hour days....not like some UNION LOAFER!
What’s the cost for the guy who is driving him?
He should have driven a Shelby GT500.
And I said so at the time to all my acquaintances who were "horrified" that the Big 3 execs would fly in private planes like a, a... well, like a Nancy Pelosi!
If they had NOT taken private planes on their last visit, stories like THIS ONE would have been headlines across the country!
Personally, I don’t care how to get to DC to beg for money. My feeling is, if they get any bail out money then they never get a penny of my business. Enough is enough.
As though CNBC wants us to believe he punches in and out every day. How much time did they waste on this twaddle?
And you are completely clueless
If the people who get PAID to think about things like FoMoCo's welfare, i.e., the board of directors, felt like you do, they'd fire Mulally.
And yet, they have not...
“This is a textbook example of why the cost-effectiveness of
the green movement is a fraud.”
No. IT IS, however, a textbook example of how to not perform an economic analysis.
The executive is NOT paid on an hourly basis. So it is inappropriate to calculate the value of his time on an hourly basis. There is no ‘lost wages’ for the auto company.
The extended time that he gets with his product may end up proving very helpful to the company in the long run.
It is amazing how many nagging little problems get resolved the instant the ‘top dog’ demands that you get them fixed.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.