New Ford CEO earned $39 million in 4 months
Alan Mulally, Ford Motor Co.’s new president and chief executive, received compensation valued at $39.1 million during his four months on the job last year, according to an analysis of a federal regulatory filing made Thursday.
Mulally succeeded Bill Ford as CEO of the Dearborn, Mich.-based company on Sept. 1.
The nation’s second-biggest automaker lost $12.7 billion in 2006, the largest loss in its 103-year history, largely because of a massive restructuring plan undertaken amid a withering assault by Asian automakers, which have taken an increasing share of the U.S. auto market.
Ford expects more losses this year and in 2008 but expects to return to profitability in 2009.
Mulally was paid a salary of $666,667 in 2006, a prorated amount based on the $2 million in annual salary that the company agreed to pay him, according to Ford’s proxy statement filed with the Securities and Exchange Commission.
Mulally also received a $7.5-million hiring bonus and $11 million to offset performance and stock option awards that he forfeited when he left his previous employer, aircraft maker Boeing Co.
He got other compensation totaling $334,433, which included $172,974 for required use of corporate aircraft and $55,469 for relocation costs and temporary housing.
Ford also gave Mulally stock and option awards that had an estimated value of $19.6 million when they were granted his first day on the job, the company said.
These pay calculations include salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock and option awards granted during the year. The calculations do not include changes in the present value of pension benefits or the company’s cost of stock and option awards granted before 2006, and the figures can differ from the company’s total.
Bill Ford, who is still the automaker’s executive chairman, received no cash salary or bonus in 2006 pursuant to his May 2005 compensation arrangement.
He received other compensation valued at $393,848, including $185,232 for required use of corporate aircraft and $85,708 for security.
The company also gave him stock and option awards that had an estimated value of $4.9 million when they were granted on March 10, 2006, but they were converted to shares of common stock and donated to a charity.
