Ford OKs Jet for Mulally's Family, Guests

Ford Motor Co. is raising President and CEO Alan Mulally's annual compensation of nonqualified stock options from $5 million to $6 million, citing his 2006 performance results and his role in “progressing his key priorities.”

In its annual filing with the U.S. Securities and Exchange Commission, Ford also says Mulally is required to use company aircraft for personal travel for security reasons and is entitled to have his “wife, children, and guests travel with him at company expense.”

Furthermore, Ford will pay for Mulally's family and guests to use company aircraft for personal reasons even when he is not on board, the filing says.

Meanwhile, Ford says Mark Fields, president-The Americas, requested the board change his compensation arrangement related to his use of company aircraft. Fields took heat after it was discovered he used Ford aircraft to commute weekly between Dearborn, MI, and his home in Florida.

In an effort to quell the controversy, Fields said he would fly commercial. In the filing, Ford says “the company will pay the costs, including first-class commercial airfare, for personal travel to and from his home in Florida” and “will continue to provide tax relief as a result.”