Ford Motor, the second-largest U.S. automaker, boosted annual compensation from $200, 000 to $250,000 for board members and will pay $650,000 to Edsel Ford II, for his work as a consultant and director.
The company’s profit was boosted by a noncash gain of $12.4 billion won from eliminating a valuation allowance against deferred tax benefits. This led to Ford reported net income of $20.2 billion for last year, the highest since 1998. On the other hand the shares lost36% in 2011, after a 68% gain in 2010, but climbed 16% in 2012.
“We review all the compensation levels on a regular basis, and in the case of the board, determined this was needed to ensure we continue to attract and retain the talent we have,” Todd Nissen, a Ford spokesman, said in a phone interview.
The compensation for directors was cut in half to $100,000 in 2006m when the company borrowed $23 billion to restructure its operations, in 2009 the board elected to forgo cash payments entirely, and in 2010 the compensation was brought to $200,000. For Edsel Ford, who has a consulting contract with the company since 1999, this is the first increase in consulting compensation he’s received since the arrangement began.