Strapped U.S. automakers reward executives

DETROIT, May 6 (UPI) -- Compensation packages awarded to executives at top U.S. auto companies averaged $4.2 million in 2006, The Detroit Free Press reported.

The newspaper conducted an analysis for 2006, a year in which two-thirds of companies studied failed to post profits. The analysis showed that total compensation for the executives rose 22 percent from 2005, when compensation averaged out at $3.5 million.

The survey found that Alan Mulally, chief executive of Ford Motor Co., ranked highest in compensation with $39.1 million -- which included a bonus for leaving Boeing Co. to join Ford.

Industry experts argue that just because a company does not make a profit does not mean it cannot award compensation if that is in the best interest of moving the company toward financial stability.

"If you're in a tough world and you didn't go bankrupt, maybe that's a good thing," said Mark Watson, managing director of corporate governance for Moody's Investors Service in New York. "You look at the airline industry and the auto industry. They must be struggling to keep talent. They're under an enormous amount of stress and strain."