DEARBORN, Mich. — The pay package for Ford CEO and former top Boeing executive Alan Mulally rose 11 percent last year to $29.5 million, or a little more than $5 for every vehicle sold.
Mulally earned $2 million in salary, up 43 percent from 2010, and stock awards valued at $13.9 million, up 86 percent from the prior year. But his performance bonus dropped 42 percent 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.
Despite rising commodity costs and charges for a big expansion in Asia, 2011 was the company’s third straight profitable year. There were problems. Ford’s U.S. quality ratings were tarnished by glitches in its touch-screen dashboard systems and shifting problems in some automatic transmissions. And while the company gained market share in Europe, its share was flat in other regions.
Mulally’s compensation was the highest since 2006, the year he was hired from the Boeing Co. to turn around Ford. He made $39.1 million that year thanks to a performance bonus and compensation for leaving the Chicago-based airplane maker.
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.” Mulally defended his pay in an interview last fall with The Associated Press, saying most of it is tied to the performance of the company’s shares.
“The vast majority of my compensation is at risk, because the numbers that you see are only realizable if we profitably grow the corporation. And that’s the way it should be,” he said.
Ford’s stock price fell 36 percent in 2011. It’s climbed 54 percent since Mulally joined the company.
Ford Motor Co. reported last year’s compensation for Mulally and for company Chairman Bill Ford on Friday in a filing with the federal government.
Bill Ford, who stepped down as CEO when he hired Mulally, saw his compensation drop 55 percent 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 percent to $520,000 and his stock awards fell 21 percent to $2.8 million.
Ford spent $1.4 million on perks and other compensation for Bill Ford.