Ford Drops Alan Mulally’s Compensation By 29% Last Year
Ford Motor Company has dropped the compensation of CEO Alan Mulally’s 29% last year after they fell short of their profit and cash flow targets. Mulally received around $2 million in salary, $3.95 million in bonus, and $15 million in stock, options, and other compensation.
Ford is currently restructuring their European operations and is adding plans in China to cut their losses in that region. Ford hit around 3% of their target for global market share and 32% of their goal for automotive operating cash flow.
This reduced Mulally’s bonus paid. He has received $162 million in compensation since joining Ford in 2006 from Boeing according to Bloomberg.
Ford has recovered substantially since 2009 when they were trading below $2. Last year, Ford reclaimed investment-grade credit ratings and they paid out their first dividend since 2006. Ford reported a net income of $5.67 billion.
Ford is preparing for Mulally’s departure and there is speculation that Ford COO Mark Fields will become CEO after at least 2014. Mulally’s shoes will be hard to fill since he was able to successfully turn around Ford’s operations, cut costs, and get the company to focus on fuel-efficient vehicles.