Ford Motor Co. CEO Alan Mulally will be receiving a bonus from the automaker when his employment ends as reward for leading revival efforts. In a regulatory filing, Ford said that this payment is based on how much Ford contributed to the retirement and benefit equalization plans of Mulally. For 2012, Ford posted a net income of $5.67 billion.
Its shares also rose by 20%, doing even better than the 13% improvement reported by the Standard & Poor's 500 Index. In an interview, company spokesman Jay Cooney said that the agreement for the payment held a Feb. 13 date and serves to clarify a previous agreement. Cooney explained that there had been no changes. The accord didn’t mention the amounts. Ford was able to get back investment-grade credit ratings.
It has also been able to pay out is first dividend since 2006 based primarily on the success of its namesake brand, which was the lone vehicle line to surpass sales of 2 million units last year in the U.S. The 67-year-old Mulally has set up a global product development plan dubbed One Ford to increase profits by selling the same models worldwide instead of offering different versions for an assortment of regions. Ford posted $30.1 billion in losses from 2006 through 2008. But in the last four years, Ford posted earnings of $35.2 billion.
Last December, Mark Fields was promoted to COO by Executive Chairman Bill Ford. This meant that Fields, a veteran of 23 years, is being positioned to be the successor of Mulally after 2014. We will get the details of Mulally's compensation for 2012, which include salary and benefits, later this year in Ford’s proxy statement.
In March 2012, Ford gave Mulally some stock valued at $58.3 million. He was given $56.6 million the previous year. In addition, Ford has unveiled details about the Feb. 8 decision of the Venezuelan government to devalue its currency to an exchange rate of 6.3 bolivars to the U.S. dollar and has given information on how this move will affect Ford’s operations in the country.