He’s taking on more duties, but Ford Motor Co.’s new CEO Mark Fields also will be getting a few more dollars — and perks – after taking over for Alan Mulally, who retired as chief executive on Monday.
In a regulatory filing today, Ford disclosed that Fields will get a pay package in his new position worth at least $5.25 million. That’s on top of a lucrative stock option package, potential bonuses and other benefits including the use of a corporate jet.
That’s still short of the pay package taken home by Mulally last year, as he began to wrap up his 8-year stint as Ford CEO, a position from which many credit the former Boeing executive with saving Ford – the only member of the Detroit Big Three not to have gone into bankruptcy or require a federal bailout package.
But Fields also gets a fair share of credit for Ford’s turnaround. In fact, many of the pieces of the financial plan authorized by Mulally, soon after joining the maker in 2006, were authored by the now 51-year-old Fields.
(Mullaly, Fields make early transition. Click Here the serious challenges facing the new Ford CEO.)
The Ford Board of Directors authorized a 13% pay hike for the New Jersey native, to $1.75 million from the $1.54 million he was earning as Ford chief operating officer. Fields also will receive a $3.5 million incentive package, and options to purchase 710,000 shares of the maker’s stock at $17.21, the closing price on July 1. At the least, he will earn $5.25 million.
That’s actually below the total $10.2 million package Fields got last year, but the Ford veteran will likely receive significantly more money in bonuses and by cashing in prior stock options.
Mulally, who had seen his salary, bonuses and options rise sharply as Ford recovered, took home $23.2 million in 2013. The now-retired exec will still have some money coming from Ford. Among other things, he still has stock options that can be cashed in, and he will continue to draw housing and travel perks through the end of August.
Perhaps the most controversial part of new CEO Fields’ package is the use of Ford’s corporate jet. Like its cross-town rivals, the maker actually sold off its air fleet following an embarrassing hearing in Washington, D.C., in late 2008, when the Detroit chief executives flew down for Congressional hearings aimed at winning an industry bailout.
But even before the Great Recession began, Fields had sworn off the corporate jet. In 2006, he was the subject of Detroit headlines for using the company plane to visit his family each weekend in Florida, a perk he had negotiated as part of an earlier contract.
In his new position, Ford has decided that added security is needed, requiring the use of a corporate jet, rather than having Fields fly commercial.
(Click Hereto find out how Ford – and the rest of the industry – fared in the June sales race.)
Ford’s Chairman Bill Ford Jr. took home $12 million last year, including a $2 million base salary. Company officials say they prefer to use performance bonuses for the bulk of senior executive compensation in order to ensure executives like Fields focus on driving shareholder value.
(Click Here to find out more about the latest shake-up in Ford’s global design department.)
Across town, General Motors CEO Mary Barra, the first female chief executive at a major automaker, will be eligible to earn as much as $14.4 million in 2014. Compensation has not been set for Sergio Marchionne, following the completion of the merger of Chrysler and Fiat into the new Fiat Chrysler Automobiles, but in 2013 he collected a total of $5.4 million from the two then-separate carmakers.
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