Compared to his counterpart at General Motors, Alan Mulally was a well-paid man last year, taking home $21 million as part of a package including salary, bonuses and stock options. But the Ford Motor Co. CEO nonetheless saw his compensation dip from the $29.5 million he made in 2011.
Given much of the credit for helping save the second-largest of the domestic makers – and helping it steer through the Great Recession without the federal bailouts taken by cross-town rivals GM and Chrysler, Mulally has still been rewarded handsomely since leaving Boeing in 2006, Ford financial statements pegging his total earnings at $169.3 million.
Mulally’s 2012 earnings were disclosed in Ford’s latest proxy statement. It shows he got the same $2 million salary as the year before, but stock options fell from $21.4 million to $14.3 million, while the exec’s bonuses tumbled from $5.5 million to $3.95 million.
Bonuses for Ford’s top executives are determined according to a variety of factors including quality, global profits, cash flow and market share. Ford’s share took a tumble in 2012, and cash flow fell well short of the bonus plan’s target.
Even so, Ford has reported four consecutive years in the black after a series of devastating losses leading up to and during the recession. Last year’s net income came to $5.7 billion, a $307 million decline from 2011 excluding special charges.
Mulally’s total compensation package is expected to dwarf that of GM Chairman and CEO Dan Akerson, at $9 million. GM has not issued its proxy statement detailing executive pay, yet.
There had been reports Akerson would try to get a 20% increase but he appears to have backed down in light of sharp criticism by Congress of the pay hikes taken by executives at companies who haven’t paid off the bailouts they received under the TARP program.
Chrysler CEO Sergio Marchionne has not taken a salary since joining the automaker in 2009, after it emerged from Chapter 11 protection. He did receive $1.2 million in stock awards and options, along with a housing allowance and other perks. Marchionne has drawn salary and bonuses as the CEO of Chrysler’s Italian partner Fiat and its spin-off, Fiat Industrial. His total compensation for 2011 ame to $22.2 million.
Mulally’s package also well-exceeded the take-home of his boss, Executive Chairman Bill Ford Jr., who received $2 million in salary, and $14.8 million overall, counting bonuses and stock.
New Ford Chief Operating Officer Mark Fields took home a total of $8.9 million, while Chief Financial Officer Bob Shanks netted $5.2 million, all in. Jim Farley, the global sales and marketing chief who recently took on oversight of Lincoln, netted $4.6 million.
Ford’s hourly workers, meanwhile, received record profit-sharing checks this week covering 2012, a total of $8,300 for the typical member of the United Auto Workers Union.
Tags: Alan Mulally, Ford mulally, akerson pay, alan mulally pay, auto exec pay, auto news, bill ford pay, car news, executive pay, ford news, marchionne pay, mulally pay, paul a. eisenstein, paul eisenstein, thedetroitbureau