Ford's Folly

Ford Motor Company managed to post losses of $12.7 billion dollars for 2006 -- their biggest ever.

But:

[CEO Alan] Mulally said no decision had yet been made about executive bonuses, but he confirmed it is something Ford is looking at and defended the idea of paying the bonuses, even at a time of record losses. He said Ford needed to makes sure pay for all its employees, both salaried and hourly, was competitive so that it did not lose the people it needs to execute the turnaround.

So in spite of posting a net loss that exceeds the entire gross domestic product of Lithuania, you're giving them bonuses??? For what... meritorious failure on an unprecedented scale?

"We use the word bonus, but it is a key piece of their compensation, and that's how we pay them for the performance they're achieving..."

Performance? Achieving? I don't believe those words mean what you think they mean, Mr. Mulally.