Ford said Wednesday that new CEO Jim Hackett is eligible for at least $13.4 million in total annual compensation.
His prececessor, Mark Fields, meanwhile, who was ousted by the board over the company's 37 percent stock slide, could walk away with about $57.5 million in compensation, Bloomberg reports. The bulk of Fields' consolation prize is in unvested stock awards worth $29.4 million, as of Wednesday's close, that will vest through 2020. Fields also is eligible for $17.5 million in retirement benefits, stock options worth $8.1 million and an incentive bonus of about $2.1 million.
Hackett, 62, a former chief executive of furniture manufacturer Steelcase, was named to replace Fields on Monday.
Hackett will earn a $1.8 million annual salary, up from $716,000 at his previous job as chairman of the Ford unit developing self-driving cars and related projects.
He will receive $7 million in stock-based compensation and pocket a $1 million bonus for becoming CEO. He is also eligible for an annual bonus of up to $3.6 million, plus compensation from his service at Ford's mobility unit. Some of the compensation for Hackett will vest over three years. Hackett was elected to Ford's board effective Friday.
Fields will retire from the company effective Aug. 1. He resigned from the Ford board immediately. He will be eligible for pro-rated incentive compensation through Aug. 1, a company retirement program, a voluntary separation program offered to some management employees.
In March, Ford said Fields received total compensation of $22.1 million for 2016, up nearly 19 percent from $18.6 million.
Joe Hinrichs, head of the Americas since December 2012, who was named on Monday to manage global product development, manufacturing and labor affairs, purchasing, and environmental and safety engineering, received a $5 million restricted stock-based grant.
He received total compensation of $6.7 million in 2016.
Hackett said after discussing some management changes Monday that "there's more to come later in the week that will round out my team." This morning, Ford announced those changes:
- Raj Nair to lead Ford North America; Steven Armstrong will lead Ford of Europe, Middle East & Africa; Peter Fleet to lead Ford Asia Pacific.
- Dave Schoch retiring after 40-year career at Ford.
- Hau Thai-Tang to lead Global Product Development and Purchasing.
- Sherif Marakby rejoins Ford as vice president, autonomous vehicles and electrification.
- Ken Washington named vice president, Research and Advanced Engineering, and chief technology officer.
- Neil Schloss appointed vice president and chief financial officer, Mobility.
- Kenneth R. Kent named vice president and treasurer.
- Bradley Gayton named group vice president, chief administrative officer and general counsel.
- Jeff Lemmer named chief operating officer, Information Technology.
Ford replaced Fields amid investor unease about the U.S. automaker's slumping stock price and its ability to counter threats from longtime rivals and Silicon Valley.
Moody's senior vice president Bruce Clark said in a research note the announcement is credit negative and could reflect more serious challenges than previously known. "The appointment of a new CEO at Ford was unexpected and comes in the absence of any major missteps by the company during recent years," he wrote.
Chairman Bill Ford Jr., whose family effectively controls the U.S. No. 2 automaker, said on Monday he wanted Hackett to speed up decision-making and cut costs, but did not elaborate on how the new CEO should change operations.Ford last week announced plans to cut 1,400 white-collar positions. It is expected to consider further significant cost cuts in the next three to six months.
Reporting by David Shepardson in and Ankit Ajmera