'07 payment for top Ford executive was $22.8M

4/5/2008

DETROIT - Ford Motor Co. President and Chief Executive Alan Mulally received compensation valued at $22.8 million in 2007, down nearly 42 percent from that of the prior year, when he joined the company and collected a hefty signing bonus, according to a federal regulatory filing published yesterday.

He earned $2 million in salary and a $4 million bonus in 2007. Ford lost $2.7 billion in 2007, largely because of continuing troubles in the North American market, better than a $12.6 billion loss in 2006. Ford gave him stock and options awards it valued at $12.3 million on March 5 and March 30, 2007, the dates they were granted. He got $1.4 million in perks, including personal use of company phone cards and cell phones, car and driver service, season tickets to athletic events, club memberships and fuel, and car washes for evaluation vehicles lent to executives. For Mr. Mulally, the perks included $752,203 for his personal use of the company's jet, as well as personal use of the jet by his wife, children, and guests "to ease the burden of his move" to southeast Michigan and away from his family in Seattle, according to the company's proxy filed with the U.S. Securities and Exchange Commission.

Ford's compensation committee determined that he partially met his performance goals for the year and mostly met goals for operational effectiveness and strategic direction.

The compensation did not sit well with the United Auto Workers, which reached an agreement in 2007 that will lower pay levels for thousands of U.S. hourly workers and transfer billions in retiree health-care liabilities to a separate, union-administered trust.

"We did not sacrifice so that management could find a way to reward themselves with higher compensation," said UAW President Ron Gettelfinger. He called the pay to Ford's top executives "excessive and unjustified."