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Ford's Mulally Paid $26.5 Million In 2010

April 1, 2011
2 min to read


DETROIT - Ford Motor Co. paid Chief Executive Alan Mulally more than $26.5 million in salary and stock compensation last year, an amount likely to become a hot-button union issue during labor negotiations later this year.


Mr. Mulally received $1.4 million in salary and $9.45 million in a cash bonus as part of his compensation package, the company said Friday. Executive Chairman William Clay Ford Jr. also received total compensation of $26.5 million, which included a salary of $1.4 million and a cash bonus of $2.7 million, reported The Wall Street Journal.

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Ford also disclosed that Americas President Mark Fields received 2010 total compensation of $8.82 million, while Chief Financial Officer Lewis Booth was paid $8.20 million and manufacturing executive vice president John Fleming received $5.92 million.


Ford executives are profiting from the company's turnaround while compensation for executives at General Motors Co. and Chrysler Group LLC is still limited under the terms of the bailouts they received from the U.S. government. GM Chief Executive Dan Akerson has a compensation package worth $9 million.


Last year was one of Ford's most profitable years ever. Income for the year totaled $6.6 billion, up from $2.7 billion in 2009. Revenue was $120.9 billion, $17 billion more than in 2009, excluding sales of its former Volvo business.


Both Messrs. Mulally and Ford continued to take a voluntary 30% pay cut in their salaries. The executives initiated the reduction in 2009 amid the recession.


The company also said it spent $167,796 on chartered air transportation for Mr. Mulally since he is barred from flying on commercial aircraft for security reasons. An additional $85,425 was spent on security and $97,271 on housing.

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Although Mr. Mulally is credited with returning the auto maker to profitability and steering the company clear of bankruptcy, the payout comes as the United Auto Workers union is preparing for labor negotiations before the current contract expires in September.


Most UAW members are still living with the wage freezes and other concessions that they agreed to in 2009 to ensure Ford maintained its financial footing amid a deep recession which pushed cars sales to record lows.


The compensation figures don't include the vested stock Messrs. Mulally and Ford have collected since the options haven't yet been cashed. Last month, Ford disclosed that Mr. Mulally held stock worth $33.4 million at the end of 2010 while Mr. Ford's holding is valued at $25 million.


UAW President Bob King blasted Mr. Mulally's pay package when Ford disclosed the CEO's stock holdings. He called the payout "morally wrong." Canadian Auto Workers President Ken Lewenza called the stock options "obscene."

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