Ford (F) came within a nickel of its 52-week low yesterday, hitting $4.35. News also came out that the US car companies will urge Congress to support funding up to $50 billion in low-interest loans over three years. Perhaps the Big Three should go into the banking business. The federal support would be forthcoming more quickly.

Alan Mulally was to be Ford’s savior, replacing Bill Ford who could not get from the front door of the Ford headquarters to his Lincoln in the parking lot without a guide.

According to the last Ford proxy, Mulally has a base salary of $2 million. In 2007, his total compensation was over $21 million.

Ford’s defense of Mulally’s pay is likely to be that the entire industry is in trouble. The logic for that is thin. CEO compensation rarely ignores outside forces, even if those forces are overwhelming. Pay for performance is just that. Ford’s stock is down 40% over the last two years. Another year of Mulally making $20 million would be inappropriate.

It would also cost Ford shareholders money that the company does not have. Unless, that is, the government gets them that $50 billion.

Douglas A. McIntyre

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