DETROIT, Feb 19 (Reuters) - Ford Motor Co will pay a bonus to Chief Executive Alan Mulally after he leaves the company, in a nod to his role in revitalizing the second-largest U.S. automaker since his hiring in 2006.
Ford agreed to give Mulally a lump sum that would be four times what the company contributed to his retirement plans during his tenure, according to a Feb. 13 pact included in Ford’s annual regulatory filing on Tuesday.
The filing is meant to clarify the terms of Mulally’s initial hiring agreement, Ford spokesman Jay Cooney said. Ford did not disclose the amount of this bonus.
Mulally, 67, is closely identified with the company’s success because of his “One Ford” plan, which centers on connecting the automaker’s once-disconnected business units to achieve economies of scale and boost profits.
Last year, Ford said Mulally had agreed to remain CEO at least until the end of 2014, in response to increased questions about its succession strategy.
As part of that announcement, Ford named Mark Fields, 52, as its chief operating officer. Fields is widely viewed as the front-runner to succeed Mulally.