AMERICAN CHIEF EXECUTIVE'S PAY

In 1997, Ford Motor Company paid a total of $10.7 million in salary, bonuses, and options to its Chairman Alex Trotman, whose bonus alone was $7 million. In that same year, Daimler-Chrysler paid Robert Eaton $6.1 million. During that same period, the workers who provide the vehicles only received 3 percent raises in 1997. "The industry continues a two-pronged strategy to maintain healthy profits: cut costs even as they increase incentives to lure new car and truck buyers into showrooms" (Howes, 1998, ARC).

The auto executive's pay was far greater than the average of CEO pay of 3.68 million salary, bonus and long-term incentive payouts received by "the chief executives of the nation's 200 largest corporations as tracked by Pearl Meyer & Partners Inc., a New York compensation firm" (Howes, 1998, ARC). Is this pay "too much?" To answer that question, more questions must be asked. The most important one is "Too much in relation to what?"

Mary Conroy, in 1997, wrote a thoughtful analysis that pointe

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