Post by TonyV on Mar 22, 2010 10:42:51 GMT -5
Posted: 9:01 a.m. March 22, 2010 | Updated: 11:30 a.m. today
Ford's Mulally made a total $12.87M in compensation last year
BY BRENT SNAVELY
FREE PRESS BUSINESS WRITER
Ford disclosed today that it paid Ford President and CEO Alan Mulally $12.87 million in total compensation in 2009 compared with $7.54 million in 2008. It also said Ford Executive Chairman Bill Ford Jr. continues to voluntarily forgo any compensation.
In 2009, Mulally accepted a 30% salary decrease, which cut his salary to $1.4 million compared with $2 million in 2008, Ford said in a regulatory filing today.
Also, neither Mulally nor any Ford salaried employees received a cash bonus in either 2008 or 2009.
Most of the increase in Mulally’s compensation is due to the value of his stock awards, which increased to $10.97 million last year from $4.5 million in 2008.
Ford’s stock price rose to a five-year high of $14.54 last Thursday after an analyst and a debt rating agency raised their outlooks on Ford, which continues to gain market share and show improvement to its finances faster than expected.
“We tie our executive compensation to the company’s performance…and when the company performs well and the investment community believes in Ford — that is a good thing for all of our stakeholders,” said Ford spokesman Mark Truby.
In addition to his $12.87 million in salary, bonus and other benefits, Mulally received stock options with an estimated value of $5.05 million in 2009 compared with $9.44 million in 2008.
However, the Free Press does not include those figures as part of total compensation, because of the uncertainty of their value and inconsistent comparisons with past reports.
Bill Ford, great-grandson of company founder Henry Ford, did not receive any actual compensation in 2009. However, he continued to accrue stock awards and stock options that were worth a total of $16.8 million in 2009.
While Ford has not accepted any actual compensation since 2005, the board of directors began setting aside stock awards and options for Ford in 2008 that Ford will accept once the company’s automotive operations are profitable on an annual basis.
Ford reported a profit of $2.7 billion for 2009 — its first annual profit since 2005 — but much of that profit was due to onetime accounting gains.
High pay has critics
Mulally’s compensation continues to draw fire from some UAW members, even though Ford’s turnaround plan, launched in 2006, is gaining traction with market share gains in both the U.S. and Europe.
“I’ll admit that it appears everything he touches turns to gold,” Nick Kottalis, president and chairman of UAW Local 600’s Dearborn Truck unit, said Sunday. “But it is the workers' dedication and commitment to this company that has brought Ford back on this major rebound.”
Mulally was paid $14.15 million in 2007 even as the company lost $2.7 billion. In 2006, when he was hired, Mulally received $18.5 million in bonuses.
During congressional testimony in November 2008, Mulally was asked whether he would work for $1 by members of Congress.
Mulally’s response -- “I think I'm OK where I am” -- became a rallying cry last year for Ford’s hourly workers when they were asked for a second time in less than 12 months to vote in favor of contract modifications. In November, the UAW announced that more than 70% of Ford’s workers rejected that deal.
Ford further angered UAW members in December when it reinstated merit pay, tuition reimbursement and 401(k) contributions for white-collar workers. Kottalis said that anger persists even though Ford paid hourly workers profit-sharing checks in March.
“I don’t want to sound ungrateful, but the average worker got $450 gross,” Kottalis said. “How do you justify that with Alan making millions of dollars.”
Despite the complaints, Mulally’s pay seems generally in line with other top automotive executives.
In February, General Motors’ board of directors approved Chairman and CEO Ed Whitacre’s $9-million pay package after the U.S. government’s pay czar approved it.
Whitacre will get a base salary of $1.7 million, according to records filed with the U.S. Securities and Exchange Commission. He also will receive $5.3 million in GM stock that will be payable over three years beginning in 2012. He also will get restricted stock valued at $2 million.
Other top paid officials
In its proxy filed today, Ford also disclosed that its other top-paid executives in 2009 included CFO and Executive Vice President Lewis Booth, Executive Vice President and President of the Americas Mark Fields and Ford of Europe Chairman John Fleming.
In 2009, Ford paid $3.07 million to Booth, $3.22 million to Fields and $3.1 million to Fleming — not counting stock options.
The U.S. Securities and Exchange Commission requires publicly traded companies to disclose the total compensation for its CEO, CFO and next three highest-paid executives each year.
What happened to the planes?
Ford also disclosed today that it closed an airplane hangar at Detroit Metropolitan Airport and turned over the management of its three airplanes to a leasing company in 2008.
Under the arrangement, Mulally and Ford can use the planes for business and personal travel, but the management company can also charter the planes to others for private use. Ford said the change has allowed it to reduce its total air travel costs.
Truby said Ford tried to sell the planes but found no bidders willing to pay market value for the aircraft.
Contact BRENT SNAVELY: 313-222-6512 or bsnavely@freepress.com.
Ford's Mulally made a total $12.87M in compensation last year
BY BRENT SNAVELY
FREE PRESS BUSINESS WRITER
Ford disclosed today that it paid Ford President and CEO Alan Mulally $12.87 million in total compensation in 2009 compared with $7.54 million in 2008. It also said Ford Executive Chairman Bill Ford Jr. continues to voluntarily forgo any compensation.
In 2009, Mulally accepted a 30% salary decrease, which cut his salary to $1.4 million compared with $2 million in 2008, Ford said in a regulatory filing today.
Also, neither Mulally nor any Ford salaried employees received a cash bonus in either 2008 or 2009.
Most of the increase in Mulally’s compensation is due to the value of his stock awards, which increased to $10.97 million last year from $4.5 million in 2008.
Ford’s stock price rose to a five-year high of $14.54 last Thursday after an analyst and a debt rating agency raised their outlooks on Ford, which continues to gain market share and show improvement to its finances faster than expected.
“We tie our executive compensation to the company’s performance…and when the company performs well and the investment community believes in Ford — that is a good thing for all of our stakeholders,” said Ford spokesman Mark Truby.
In addition to his $12.87 million in salary, bonus and other benefits, Mulally received stock options with an estimated value of $5.05 million in 2009 compared with $9.44 million in 2008.
However, the Free Press does not include those figures as part of total compensation, because of the uncertainty of their value and inconsistent comparisons with past reports.
Bill Ford, great-grandson of company founder Henry Ford, did not receive any actual compensation in 2009. However, he continued to accrue stock awards and stock options that were worth a total of $16.8 million in 2009.
While Ford has not accepted any actual compensation since 2005, the board of directors began setting aside stock awards and options for Ford in 2008 that Ford will accept once the company’s automotive operations are profitable on an annual basis.
Ford reported a profit of $2.7 billion for 2009 — its first annual profit since 2005 — but much of that profit was due to onetime accounting gains.
High pay has critics
Mulally’s compensation continues to draw fire from some UAW members, even though Ford’s turnaround plan, launched in 2006, is gaining traction with market share gains in both the U.S. and Europe.
“I’ll admit that it appears everything he touches turns to gold,” Nick Kottalis, president and chairman of UAW Local 600’s Dearborn Truck unit, said Sunday. “But it is the workers' dedication and commitment to this company that has brought Ford back on this major rebound.”
Mulally was paid $14.15 million in 2007 even as the company lost $2.7 billion. In 2006, when he was hired, Mulally received $18.5 million in bonuses.
During congressional testimony in November 2008, Mulally was asked whether he would work for $1 by members of Congress.
Mulally’s response -- “I think I'm OK where I am” -- became a rallying cry last year for Ford’s hourly workers when they were asked for a second time in less than 12 months to vote in favor of contract modifications. In November, the UAW announced that more than 70% of Ford’s workers rejected that deal.
Ford further angered UAW members in December when it reinstated merit pay, tuition reimbursement and 401(k) contributions for white-collar workers. Kottalis said that anger persists even though Ford paid hourly workers profit-sharing checks in March.
“I don’t want to sound ungrateful, but the average worker got $450 gross,” Kottalis said. “How do you justify that with Alan making millions of dollars.”
Despite the complaints, Mulally’s pay seems generally in line with other top automotive executives.
In February, General Motors’ board of directors approved Chairman and CEO Ed Whitacre’s $9-million pay package after the U.S. government’s pay czar approved it.
Whitacre will get a base salary of $1.7 million, according to records filed with the U.S. Securities and Exchange Commission. He also will receive $5.3 million in GM stock that will be payable over three years beginning in 2012. He also will get restricted stock valued at $2 million.
Other top paid officials
In its proxy filed today, Ford also disclosed that its other top-paid executives in 2009 included CFO and Executive Vice President Lewis Booth, Executive Vice President and President of the Americas Mark Fields and Ford of Europe Chairman John Fleming.
In 2009, Ford paid $3.07 million to Booth, $3.22 million to Fields and $3.1 million to Fleming — not counting stock options.
The U.S. Securities and Exchange Commission requires publicly traded companies to disclose the total compensation for its CEO, CFO and next three highest-paid executives each year.
What happened to the planes?
Ford also disclosed today that it closed an airplane hangar at Detroit Metropolitan Airport and turned over the management of its three airplanes to a leasing company in 2008.
Under the arrangement, Mulally and Ford can use the planes for business and personal travel, but the management company can also charter the planes to others for private use. Ford said the change has allowed it to reduce its total air travel costs.
Truby said Ford tried to sell the planes but found no bidders willing to pay market value for the aircraft.
Contact BRENT SNAVELY: 313-222-6512 or bsnavely@freepress.com.
