Ford CEO Mulally gets $39.1 million compensation
DETROIT (Reuters) - Ford Motor Co. (F.N) on Thursday said it awarded new Chief Executive Alan Mulally compensation of $39.1 million for four months of work in 2006, a year when the second-largest U.S. automaker posted a $12.7 billion loss.
Mulally, a former Boeing Co. (BA.N) executive, replaced Ford family scion Bill Ford Jr. as chief executive last September.
According to Ford's proxy filing with the U.S. Securities and Exchange Commission, Mulally's compensation included a prorated $666,667 salary, an $18.5 million bonus, $19.6 million of stock and option awards, and $334,433 of other compensation.
The latter sum included $172,974 for the required use of corporate aircraft and $55,469 for relocation costs and temporary housing, among other items.
Mulally's bonus included $7.5 million awarded when he was hired, and $11 million to offset compensation he gave up when he left Boeing, where he led the commercial plane division.
Compensation is based on salary, bonus, the value of stock options and other awards granted during the year, as well as incentives and perks.
Ford, using different calculations it set forth in a summary compensation table, said Mulally's compensation totaled $28.18 million for 2006. It also said Mulally also received 4 million stock options last year, but at least 3 million are now out of the money.
Chairman Bill Ford, who was CEO from January to August, did not receive any cash salary or bonus for 2006.
He had made a commitment the previous year to forgo remuneration until the company's auto unit showed sustained profits. Bill Ford was in March 2006 granted stock awards valued at $4.95 million for work done in 2005, Ford said.
Mulally joined Ford as the company was drawing up a restructuring plan that included job cuts and accelerated factory closures.
Ford, which doesn't expect its key North American auto operations to return to profitability until 2009, has been steadily losing U.S. market share to more nimble rivals led by Toyota Motor Corp. (7203.T)
EXIT PACKAGE WORTH $27.54 MILLION
According to his employment agreement, Mulally would receive $27.54 million if he were terminated for a reason other than cause in his first five years, or if Ford was acquired, merged or went bankrupt, the company said in the filing.
Among compensation granted to other executives, as calculated by Reuters, Ford Americas President Mark Fields was awarded $10.86 million for 2006, including a salary of $1.25 million, while Chief Financial Officer Don Leclair was awarded $7.99 million, including a $1 million salary.
Separately, shareholders are scheduled to vote on eight shareholder proposals at the company's annual meeting on May 10 in Delaware.
One proposal, opposed by management, calls for Ford to have a single class of shares. The company, which has been publicly traded since 1956, has two share classes, with Class B shares giving the Ford family 40 percent of voting power.
(Additional reporting by Jonathan Stempel in New York)
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