Ford CEO pay rose 11 percent to $29.5 million in 2011
DETROIT (Reuters) - Ford Motor Co (F.N) boosted Chief Executive Officer Alan Mulally's total compensation by 11 percent to nearly $30 million last year, despite the automaker falling short of its targets on market share, quality and costs.
The No. 2 U.S. automaker did, however, surpass its goals for annual profit and cash flow in automotive operations, Ford said in its 2011 proxy statement with the U.S. Securities and Exchange Commission.
Mulally, 66, got $2 million in salary and $5.5 million in cash bonuses. Including stock options and equity awards, his compensation was $29.5 million, up from $26.5 million in 2010.
Since Mulally became head of the company in 2006, he has led the automaker's turnaround, steering through the financial crisis without resorting to a federal bailout like its Detroit rivals General Motors Co (GM.N) and Chrysler Group LLC (FIA.MI).
Last year, Ford reported $20.2 billion in net income, its best performance in more than a decade and reinstated its quarterly dividend for the first time since 2006.
Since 2009, the year GM and Chrysler filed for bankruptcy, Ford's shares have risen 370 percent. But last year, Ford's stock fell 36 percent.
"Our stock has appreciated under his leadership," Ford spokesman Jay Cooney said of Mulally. "So, clearly, he has delivered shareholder value."
But Ford did not improve its market share worldwide as much as it had expected and fell short of its cost performance targets in every region but Europe, according to the filing.
Ford also failed to meet its quality objectives last year after the company fell in quality and reliability surveys due to complaints about the touch-screen entertainment system in some models.
Executive Chairman Bill Ford, 54, earned $14.5 million last year, including stock options and equity awards. That is down significantly from $26.4 million in 2010, when the Ford scion received deferred compensation from 2008 and 2009.
Ford's chief financial officer, Lewis Booth, 63, who will retire April 1, earned $7.7 million in 2011, a decline from the $8.2 million in compensation he received in 2010.
Ford Americas President Mark Fields, 51, received total compensation in 2011 of $8.8 million, unchanged from the previous year. Joe Hinrichs, the head of Ford's Asian and African operations, earned $5.3 million last year. Hinrichs, 45, was not among the top five earners at the company in 2010.
The annual retainer for each of Ford's directors will rise to $250,000 in 2012 from $200,000, the filing shows.
Last year, Mulally's compensation last year raised the ire of the rank-and-file, particularly second-tier workers who earn about $15 an hour. Last year, United Auto Workers President Bob King called Mulally's payout "morally wrong."
The UAW could not be reached on Friday morning for comment.
From 2009 to 2011, Mulally's total compensation package totaled about $74 million, Ford figures filed with the U.S. Securities and Exchange Commission show.
Some of that compensation, however, is tied up in stock options that have not yet vested and have option prices per share that are more than Ford's current value on the New York Stock Exchange of about $12.50 per share, Ford said.
(Editing by Gerald E. McCormick)