News - Ford
What Ford's top execs earn
Blue Oval cash register clangs as Ford reveals earnings for its top executives
12 Apr 2006
By TERRY MARTIN
FORD Motor Company’s chairman and chief executive officer Bill Ford received $US13.3 million ($A18.3m) compensation in 2005, almost half of which is in share options that are unredeemable until the company’s fortunes turn around and it achieves "sustainable profitability".
The information was disclosed last week when Ford filed its annual proxy statement with the US Securities and Exchange Commission, which outlines compensation for select executives.
Mr Ford received $US5.3m in common stock grants, $7.5m in stock options and $466,755 in other compensation including $US297,201 in value for the use of corporate aircraft. He has not received a cash salary since former Ford Australia chief Jac Nasser was deposed from the top of FoMoCo in 2001.
Other compensation details revealed that chief operating officer Jim Padilla – who announced last week that he would be retiring on July 1 – was granted $6.8m (including $1.46m in salary) in 2005, while Americas president and the key player behind Ford’s latest turnaround initiative Mark Fields received $3.2m, which included a salary of $972,500 and a $1m cash retention bonus designed to ensure he stays with Ford until at least October 2007. Chief financial officer Don Leclair was granted $1.58m.
Leaving the way open for Mr Fields to become Ford’s next COO, providing the turnaround plan works, Bill Ford will assume Mr Padilla’s responsibilities through the chairing of a new "executive operating committee" comprising the company’s executive vice-presidents.
As part of the transition, Mr Fields and fellow executive VP (international operations chief) Mark Schultz will report directly to Mr Ford. They had previously reported to Mr Padilla.
Mr Padilla will also not stand for re-election to the company’s board at the AGM on May 11, joining two other directors (Carl Reichardt and Marie-Josee Kravis) in a move that will reduce the number of directors from 15 to 12.
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