Ford CEO earns $18 million in 2009

• Source: Xinhua
• [08:57 March 24 2010]
• Comments

Alan Mulally

Ford Motor Co. CEO Alan Mulally's 2009 compensation package totaled nearly $18 million, including stock options and grants, local media reported Tuesday.

Mulally's compensation was 1 million dollars more than he received in 2008, even though he got less cash because of a voluntary reduction that dropped his cash pay from 2 million to $1.4 million, media reported.

Ford swung back to a profit of more than $2.7 billion last year after years of staggering losses. So, most of Mulally's pay increase was a reflection of the increased value of the company's stock, which traded at about $8.50 a share when he was hired in September of 2006 and closed at $13.99 a share on Monday.

By comparison, General Motors Chairman and CEO Edward Whitacre Jr. this year will receive a compensation package worth $9 million, according to media.

The United Auto Workers (UAW) also has been a big beneficiary of Ford's rising share price.

Last February, the union received 362 million stock warrants with a $9.20 a share strike price that made them all but worthless -- then -- as part of a deal to take over responsibility for hourly retiree health care. At today's prices, however, the UAW has netted more than $1.5 billion.

One person who has yet to receive any increased rewards is Executive Chairman Bill Ford Jr., who has been working without compensation since 2005.

Ford spokesman Mark Truby said Bill Ford, the great-grandson of Henry Ford, will continue to forgo compensation "until the board determines we've achieved automotive profitability for a full year. "

When that happens, his total compensation for 2009, including stock options and grants, will be $16.8 million.