Ford Motor Company (F)’s CEO, Mark Fields Received $18.6 Million In Compensation
Annual compensation for Ford Motor Company (NYSE:F)’s CEO, Mark Fields totaled $18.6 million in 2014, which was quite below what his predecessor, Allan Mulally, earned in 2013. Ford pegs CEO compensation on performance. The company achieved 91% of the performance target in 2014, compared to more than 100% in 2013 under Mulally, the turnaround CEO.
Ford Motor Company (NYSE:F) disclosed that Fields, who took over as CEO of the global automaker on July 1, 2014, earned a total of $18.6 million in compensation last year. The CEO’s remuneration for 2014 reflected his role as CEO for half of the year and as COO for the other half of the year.
In comparison, Mulally earned $23.2 million in total compensation in 2013, his last full year as CEO. As for Fields, his total pay as COO for 2013 was $10.2 million.
Full stock compensation or Mulally
Although Mulally left Ford in the middle of the year 2014, the board of the company deemed it fit to give him full compensation of stock reward for the year, citing his impact for the company’s full-year performance. As such, Mulally took home $22 million in total compensation last year, despite leaving early.
Compensation for other auto CEOs
Compared to other auto executives, Fields’ nearly $19 million pay in 2014 was above General Motors Company (NYSE:GM)’s Mary Barra, who received $14.4 million in the year. However, GM is yet to disclose the finer details of Barra’s 2014 pay. Fiat Chrysler Automobiles’ CEO, Sergio Marchionne, earned nearly $38 million in 2014, above Ford’s Fields.
While Fields and Mulally took home nearly $19 million and $22 million, respectively, in 2014, Ford’s Chairman, Bill Ford, made $15.1 million in the year. That was higher than $12 million he received a year earlier.
112% performance success in 2013
Ford Motor Company (NYSE:F) has a tradition of aligning the compensation of its executives with the company’s performance. In 2013, Ford achieved 112% of the performance target. However, performance was lower in 2014 as it was only 91% of the year’s target. Ford failed to meet the performance target for revenue and operating profit margins.
Ford Motor Company (NYSE:F) generated pretax profits of $6.3 billion in 2014, compared to $8.6 billion in 2013. Net income also declined to $3.2 billion from $7.2 billion.
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