Ford’s CEO Alan Mulally saw his 2012 compensation cut by 29% as Ford didn’t manage to reach its profit target, market share and cash flow.
For 2012 Mulally got $2 million in salary, $15 million in stock, options and other compensation and $3.95 million in bonus. In 2011 he was offered $2 million in salary, $22 million in other compensation and $5.46 million in bonus. Ford is currently restructuring its European operations and plans to open new plants in China and boost profits in North America to make up for the loss on the Old Continent.
Ford managed to reach only 3% of its global market share target and 32% of its automotive operating cash flow target. That is why Mulally’s bonus was reduced, after he received $162 million in compensation since 2006 when he joined Ford. The automaker also offered its CEO $56.6 million in stock in 2011, $58.3 million in 2012 and $11.7 million this month.
“To the mass majority of people, these are enormous numbers,” said David Whiston, an equity analyst with Morningstar Inc. in Chicago. “But is it excessive? It really depends on who you ask. Ford shareholders, especially those that bought in the low-single digits, are probably thinking Mulally’s worth every penny.”