• Apr 1, 2011
Ford had a very good financial year in 2010, with the company's second consecutive year-over-year market share increase and a net profit of $6.6 billion. Those sparkling stats made Ford's stock jump, with 68 percent in total gains for the year. And when stock prices soar, so do the executives' compensation.

The Blue Oval filed its annual proxy with the U.S. Securities and Exchange Commission, and the fine print reveals some very happy executives. At the top, CEO Alan Mulally scored $1.4 million in salary, as well as $9.45 million in cash bonuses. Not a bad take-home, but the big cash comes after adding in long-term stock options, which brings the total to $26,520,515. If ever an auto exec were worth $26 million, Mulally is it.

Ford Chairman Bill Ford, Jr., didn't do so bad, either. Ford's $1.4 million salary and $2.7 million bonus is overshadowed by long-term stock options that balloon the total to $26,460,998. Ford's numbers are a bit misleading since the chairman opted not to take any compensation until the company was solidly profitable.

Mark Fields, President of Ford Americas, took in $8.8 million in total compensation, followed by CFO Lewis Booth at $8.2 million and manufacturing and labor boss John Fleming at a mere $5.9 million. If you're counting at home, the top six reaped a total of $75 million in compensation in 2010. Now that's a good year, folks. Hit the jump to read over Ford's cash-stuffed press release.

[Source: Ford | Image: AP Photo/J. Scott Applewhite]
Show full PR text
DEARBORN, Mich., April 1, 2011 /PRNewswire/ -- Ford Motor Company [NYSE: F] today filed with the U.S. Securities and Exchange Commission its proxy statement for the 2011 Annual Meeting of Shareholders.

The proxy announces details about the company' s Annual Meeting, which is scheduled for 8:30 a.m. EDT Thursday, May 12 at the Hotel du Pont, 11th and Market Streets, Wilmington, Del.

Included in the proxy are four company and three shareholder proposals requiring the votes of shareholders. In addition, details of compensation for certain Named Executive Officers are included.

"In 2010, we accelerated performance of our One Ford Plan," the company said in its proxy statement. "We made significant progress on our One Ford goal of an exciting viable Ford delivering profitable growth for all."

Ford's stock delivered a significant improvement for the second year in a row. It appreciated 68 percent in 2010, placing the company among the top 4 percent of S&P 500 performers for the year. Ford was recognized by PricewaterhouseCoopers as the winner of the three-year Global Automotive Shareholder Award.

Ford returned to solid profitability in 2010, delivering results that exceeded expectations. The company reported $6.6 billion in net income, its highest in more than 10 years; posted Automotive operating-related cash flow of $4.4 billion; reduced Automotive debt by $14.5 billion to end the year with more cash than debt on its balance sheet; and, for the first time since 1993, increased market share in the U.S. for two consecutive years.

Because of Ford's performance during 2010, the Compensation Committee of the Ford Board of Directors approved payments for salaried employees under the company's Incentive Bonus Plan, representing the first payout in three years. Ford had voluntarily cancelled bonus payments for 2008 and 2009 performance to support the company's plan to conserve cash, reduce costs and fund continued investments in the company's accelerated product plans.

Going forward, Ford said it remains absolutely focused on its One Ford plan and ensuring that every part of its operations is competitive with the best in business. That focus led to the company's decision to not award annual merit increases for salaried employees in the U.S. and Canada in 2011, including Named Executives, because compensation benchmarking shows Ford's base salary levels currently are competitive in the U.S. and Canada.

The proxy provides specific details of total 2010 compensation for five Named Executive Officers.

The amounts shown in the proxy statement for stock and option awards represent the grant date value of these awards under applicable accounting rules – not actual compensation received by each Named Executive Officer.

Total 2010 compensation for the five current Named Executive Officers is:

* Alan Mulally, president and CEO, earned $1,400,000 in salary and $9,450,000 in cash bonus in 2010. Like he did in 2009, in 2010 Mulally continued to take a voluntary 30 percent reduction from his 2008 salary, as part of the company's plan to conserve cash and reduce expenses. Mulally's total listed compensation – including the grant date value of long-term stock options and other stock-based awards – was $26,520,515.


* Bill Ford earned $1,400,000 in salary and $2,700,000 in cash bonus for 2010. Bill Ford, who did not receive any salary, bonus or stock awards for 2005, 2006 and 2007, also took a voluntary 30 percent reduction in 2009 and 2010 from his 2008 salary. Bill Ford's total listed compensation – including the grant date value of long-term stock options and other stock-based awards – was $26,460,998, but included salary for 2008 and 2009 and the value of stock awards made for 2008. This reflects his pledge to not accept compensation for those years until the Compensation Committee determined, as it did in August 2010, that Ford's global Automotive operations had achieved full-year profitability.


* Mark Fields, Ford executive vice president and president, The Americas, earned $1,337,500 in salary and $3,600,000 in cash bonus in 2010. His total listed compensation – including the grant date value of long-term stock options and other stock-based awards – was $8,818,892.


* Lewis Booth, Ford executive vice president and chief financial officer, earned $1,237,500 in salary and $3,000,000 in cash bonus in 2010. His total listed compensation – including the grant date value of long-term stock options and other stock-based awards – was $8,196,821.


* John Fleming, Ford executive vice president, Global Manufacturing & Labor Affairs, earned $776,250 in salary and $1,400,000 in cash bonus in 2010. His total listed compensation – including the grant date value of long-term stock options and other stock-based awards – was $5,916,261.


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    • 1 Second Ago
  • 53 Comments
      • 3 Years Ago
      Mulally deserves every single penny. And to say thank you i'll be buying a 12' Focus hatchback.
      • 3 Years Ago
      He deserved it, let him be.
      • 3 Years Ago
      You all seem to think he was given all cash. He made 1.4 million, plus 9.45 million bonus in cash. The 1.4 is low for a CEO of such a large company, the bonus seems to be the thing that boosts him to kinda high levels. It would be nice to see what the criteria is for bonus amount. As for the stock options, they are only worth something now. If the company starts to tank then the value of that stock goes down. I think it's a good way to keep a CEO performing, those raised in value because he pushed a plan forward that increase stock price.
      • 3 Years Ago
      Why is CEO compensation questioned, but not athlete's or movie star's compensation?
        • 3 Years Ago
        Good question!! It always cracks me up when actors like Ben Afleck complain about CEOs making too much money. All the while, they get to enjoy the same lavish lifestyle the CEOs they call out do.

        To answer your question, more people find watching movies and sports entertaining than CEOs running fortune 500 companies. As a result, people are less sympathetic and know very little beyond what they see in the news. What they do is less noticed.

        Imagine if Mulally carried himself like Charley Sheen, or Ben Rothlisberger. He would get grilled far worse!!
        • 3 Years Ago
        Though I must admit, sports fans like myself complain about how much our favorite athletes make, especially when one of my Tigers goes to the Yankees for more money.

        As for actors, you are right. I never hear people grumbling about how much money actors make. Maybe because it's not publicized?
      • 3 Years Ago
      Mulally: totally worth it.
        • 3 Years Ago
        we(taxpayers) didnt bailout ford so i dont give a crap what ford pays Mulally 10 bucks or 26 millions its their money. they could do what they want with it.
        • 3 Years Ago
        this mulally guy is not worth 26 million he gets way too much credit
        and is overhyped .

        he actually COPIED what toyota were doing for years when he was still at boeing and did the same at ford the ( toyota plan)
        nothing new.

        and the 23 billion ford borrowed they had to they were running out of money to do the turn around not that they had a choice.

        THIS GUY IS WAY OVERHYPED PERIOD.

        COPY THE TOYOTA PLAN GET 26 MILLION . WAY TO GO .
        • 3 Years Ago
        Look, Mulally and Co. have done a good job, but that's what a good executive group SHOULD do (it's not like they are the only ones doing a good job - BMW, Mercedes, VW Group, Hyundai/Kia, etc.) and Ford has issues in Europe and is significantly behind in fast growing markets like China and India.

        Not saying he shouldn't be taking home millions, but nearly $10 million in cash bonuses and $26+ million in total compensation is a bit much.

        I mean really, if Mulally is worth this much, than the CEO of Toyota back in their heyday should have been getting $50 million (and even today, Toyota is sitting on Billions while Ford is still deep in debt).
        • 3 Years Ago
        "worth it"

        Such an understatement!

        This should be a caption contest for the photo!

        My submission is: "I know I know, I should be getting more but I'm more interested in the success of the company than issuing dividends for preferred stock holders like GM"

        encore
        • 3 Years Ago
        Wait, a guy named "ford recall.14" posting an anti Ford comment on a Ford post?

        No way!
        • 3 Years Ago
        @Ching - you = fail
        @fordrecall - nooo you're opinion isnt bias...


        "since the chairman opted not to take any compensation until the company was solidly profitable."

        Shows he has faith in his own people... says a lot.
        • 3 Years Ago
        what this mulally guy did at ford (the toyota plan) should have been done 20 years ago at ford how can you build different cars for different regions and on different platforms how dumb have you want to be (a focus for europe and a different focus for north america plane dumb.

        its like boeing building a 747 for north america a different 747 for europe and another 747 for asia on different platforms .
        leftfootbraker
        • 3 Years Ago
        Mullaly drove up to Ford HQ on his first day in his Lexus LS. He then held an executive meeting outside (with many expletives) on why Ford couldn't build a quality automobile like the LS. Yes he copied the Toyota plan, why not? It works. Obviously Ford's previous plan didn't.

        Point taken. This guy is worth every penny. Ballsy, and elected to take compensation tied to company performance. I can't imagine if they hired anyone else to run Ford into the ground.

        Worth. Every. Penny. My portfolio thanks him since I bought "F" when it was in the dumpster because I firmly believed he would turn the company around like he did Boeing.
        • 3 Years Ago
        @Ching, Mulally IS an engineer. He went to MIT. I think he's qualified.
        • 3 Years Ago
        You think so? I mean what has this done that was so visionary?

        These guys (suits, and marketing) tend to drill companies into the ground. Instead of facilitating designers and engineers, they dictate product.

        Let the car guys and engineers come up with the ideas.
      • 3 Years Ago
      Congrats to Mullaly, at least he earned his bonus, unlike many bankers.
      • 3 Years Ago
      Well-deserved, gentlemen, well-deserved, no matter what the UAW says.
      • 3 Years Ago
      "Those sparkling stats made Ford's stock jump, with 68 percent in total gains for the year."

      Can't argue with those numbers, based on the how much more the company is worth now, you could argue Ford got off light in terms of his compensation.
        • 3 Years Ago
        Bingo - he was grossly underpaid so far as executive pay scales and worth to an organization are calculated.
        • 3 Years Ago
        Right on. Lets compare and see what the top hedge-fund managers on wall street are taking home as bonuses... oh wait, we can't because they are hiding it all in swiss banks.

        At least this guy is creating a jobs, a product, and restoring an American brand to it's rightful place with the top companies in the world.
      • 3 Years Ago
      It's the stockholder's money, and if they are satisfied, it's hard to argue. I still think it's obscene. The boards of directors are like organized crime conspiring to steal the stockholders and customers money, and nobody can do anything about it. Not my call, though.
      • 3 Years Ago
      Well Earned!! Congratulations!
      • 3 Years Ago
      Reward for a job well done.
      • 3 Years Ago
      fordrecall.14 we all live in a more global market now where people know what is going on and what is needed for products, but it wasn't always so.

      While America built the Falcon, it fell to pieces (literally) on Australian roads and fell well short of what Australians would expect, so the local Ford division with the knowledge made a version for Australia. Simiarly the US could supply a large F250 truck that Australians for the most part didn't and still don't want, but couldn't supply a Falcon utility which they did, or a panelvan either.

      The US knew how to build a Mustang, but had no idea how to make a sports car for the UK, so Ford Europe took the Mustang concept, put it in a much smaller package with a four cylinder engine and we have the Capri. South Africa had special requirements too and back when we had teletypes and it took days to get around the world, a global car just didn't work.

      Working on computers and sharing designs and engineering around the world easily, is a relatively new idea. Granted it took Ford US a bit longer to acknowledge that they had very talented teams in Europe that could do small cars better then them. They are still in denial about Falcon and what Australia can do though and will kill that car before the rest of the world see what a supercharged Miami Falcon is like and believe me, it is special.

      Dan
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