Ford’s Alan Mulally receives million dollar raise for 2009 by MARK KLEIS
Ford’s CEO, Alan Mulally, who is often credited for the automaker’s recent turnaround, received a raise of nearly six percent to a total compensation package of $17.9 million for his effort in 2009. Ford posted a $2.7 billion profit for 2009 – the first annual profit in four years.
In 2009 Alan Mulally earned just $1.4 million in salary – a 30 percent cut in salary from the year before in exchange for concessions from labor unions. Mulally also forwent a cash bonus for the second year.
Mulally’s total compensation of nearly $18 million instead came largely from stock and option awards which totaled $16.5 million, which increased his total compensation due to the stock’s strong performance. Stock was trading at $13.99 on Monday by close, compared to $2.11 just last March.
Reuters points out that Ford stock massively outperformed the rest of the automotive sector for 2009 – increasing by over 700 percent compared to the S&P which rose just 23 percent. Ford originally anticipated a return to profitability in 2010, but due to strong product performance, largely positive media coverage and struggling rivals, the automaker was able to turn a profit ahead of schedule. The automaker is still projecting a full return to profitability for 2010.
Ford Motor Company’s previous CEO, William Clay Ford Jr., stepped down by his own accord in 2006 when he found and hired Alan Mulally to continue what he believed he could not achieve himself. Ford has not received any form of compensation since 2005, and vowed not to receive compensation until the automaker which bears his name returned to profitability for a full year.
Ford Motor Company plans to compensate William Clay Ford Jr. $16.8 million for his work as chairman once the board determines that the automaker achieved profitability on a global basis for its operations in 2009.
Ford Motor Company recorded a profit and obtained market share increases in both the U.S. and European markets for 2009.
source: LEFTLANE
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