In a federal filing, Ford Motor Co. revealed that CEO Alan Mulally’s compensation has increased 48% to $26.5 million for 2010 as it posted its largest annual profit in over a decade. Mulally’s salary is $1.4 million but it got a bonus of $9.45 million and $15.7 million in stock, option awards and other pay.
On the other hand, Executive Chairman Bill Ford, who hasn’t been getting compensation since 2005, got $4.8 million in salary, a bonus of $2.7 million and about $19 million in stock, option awards and other pay. The total amount includes compensation that he opted not to get since 2008.
Furthermore, Ford rewarded $56.5 million in stock to Mulally and gave $42.4 million to Bill Ford as reward for turning the company around. In 2010, Ford’s shares increased by 68% in 2010 with the arrival of new models (like the Fiesta small car). This aided in expanding its U.S. market share for the second straight year. In 2006, Mulally started working in Ford.
He is credited for stopping 3 years of losses and propelling Ford to achieve $9.28 billion in net income in the past couple of years.
Bernie McGinn, president of McGinn Investment Management in Alexandria, Va., which holds 330,000 Ford common shares, is concerned about these amounts, which may make the union raise its demands.
The UAW’s agreements with Ford, General Motors Co. and Chrysler Group LLC will expire this September. UAW President Bob King is set to negotiate new contracts this year. King said that workers have to be rewarded for the $7,000 to $30,000 in concessions they gave up since 2005.
