DEARBORN, Mich.—The pay package for Ford CEO Alan Mulally rose 11 per cent last year to $29.5 million, or a little more than $5 for every vehicle sold.
It was the company’s third straight year of profitability despite rising commodity costs and a big expansion in Asia.
Mulally earned $2 million in salary, up 43 per cent from 2010, and stock awards valued at $13.9 million, up 86 per cent from the prior year. But his performance bonus dropped 42 per cent to $1.8 million because Ford fell short of market share and quality targets in some areas.
Mulally also received $612,587 in perks and other compensation for things like the use of a private jet, a personal car and driver and security.
The pay package was Mulally’s highest since 2006, when he was hired to turn around the company. Mulally made $39.1 million that year thanks to a performance bonus and compensation for leaving his former employer, Boeing Co.
Mulally’s pay—which put him among the highest-paid CEOs in the U.S. last year when he made $26.5 million—has angered some Ford factory workers. United Auto Workers President Bob King has called his compensation level “morally wrong.” But Ford says Mulally’s pay is fair, pointing out that a majority of his compensation is tied to the success of Ford’s shares.
Bill Ford, who stepped down as CEO when he hired Mulally, saw his compensation drop 55 per cent to $11.3 million in 2011. That was partly because his 2010 salary included compensation from prior years that he earned when the company achieved sustained profitability. Bill Ford’s performance bonus also dropped 42 per cent to $520,000 and his stock awards fell 21 per cent to $2.8 million.
Ford spent $1.4 million on perks and other compensation for Bill Ford. Most of that went to private security.
Dearborn-based Ford earned $20.2 billion in 2011. Worldwide sales rose 6.7 per cent to nearly 5.7 million cars and trucks.