Skip navigation
Newswire

Ford CEO Mulally 2013 Performance Bonus Totals $13.8 Million

 

By Bernie Woodall

DETROIT, March 6 (Reuters) - Ford Motor Co Chief Executive Alan Mulally was awarded performance bonuses for 2013 worth $13.8 million, the No. 2 U.S. automaker disclosed to U.S. regulators on Thursday.

The amount Mulally makes from the restricted stock he received depends on its value on the day he sells it. The shares were worth $13.83 million based on Thursday's closing price of $15.67.

Ford said Mulally, 68, who is credited with reviving the Detroit-area automaker's fortunes after arriving in 2006, also received $3.3 million of shares after taxes, which vest fully this week, based on 2011 equity awards.

Mulally now owns Ford common stock worth $96.9 million at Thursday's closing price.

In January, Mulally removed himself from the running to become the next CEO of Microsoft Corp after months of speculation, and he reaffirmed plans to stay at Ford through the end of this year.

Mulally's 2013 restricted stock award is 882,352 shares. The restricted awards Ford made to Mulally and other top executives this week convert to common stock on March 4, 2016, according to a company filing with the U.S. Securities and Exchange Commission.

Bill Ford Jr., the company's executive chairman, was awarded restricted stock for 2013 work that was worth $6.45 million on Thursday. He also received $1.6 million of shares after taxes that fully vest this week, based on 2011 equity awards.

In a statement, the company said, "We remain committed to aligning executive compensation with the company's business performance and to tying a significant portion of executive compensation to long-term shareholder value."

Mulally took Ford's helm in 2006 and spurred a cultural change that helped Ford take quicker action and make bolder bets, analysts, executives and other industry observers have said.

Ford warned in December that the cost of launching a record 23 new vehicles and a deteriorating Venezuelan economy would dent its 2014 profit.

Sixteen of those launches will be in North America, including the highly profitable F-150 full-size pickup in the fall. Getting the truck launch running smoothly is key because the vehicle accounts for the majority of Ford's North American profit.

Other details of Mulally's compensation including his 2013 salary will be released later this month. His 2012 compensation was cut by 29 percent to about $21 million, based on share values last March, that included salary, stock awards, stock options and other perks.

Mulally's pay was reduced in 2012 in part because Ford missed some key goals for market share, profit and cash flow.

GM has said CEO Mary Barra will be paid up to $14.4 million in cash and stock this year, including $10 million under the company's long-term compensation plan that is still subject to shareholder approval in June.

Mark Fields, Ford's chief operating officer, was awarded $4.6 million worth of shares for last year's work and now owns $12.8 million in common shares of the company.

Joe Hinrichs, head of North and South American operations, was awarded $2.2 million of shares for 2013 performance, and now owns $5 million in common shares in Ford.