Ford CEO pay rose 11 percent to $29.5 million in 2011
By Deepa Seetharaman and Bernie Woodall
DETROIT (Reuters) - Ford Motor Co (F.N: Quote) boosted Chief Executive Officer Alan Mulally's total compensation by 11 percent to nearly $30 million last year, despite the automaker falling short of its targets on market share, quality and costs.
Mulally, 66, got $2 million in salary and $5.5 million in cash bonuses. Including stock options and equity awards, his compensation was $29.5 million, up from $26.5 million in 2010.
The bulk of Mulally's pay increase was in the form of stock awards. In 2011, when the No. 2 U.S. automaker's shares fell 36 percent, Mulally's cash bonus was 42 percent less than it had been in 2010.
Ford said in its 2011 proxy statement with the U.S. Securities and Exchange Commission that it had surpassed its goals for annual profit and cash flow in automotive operations.
Mulally became CEO in 2006 when Ford was facing its own financial crisis. Ford borrowed $23.6 billion from banks in late 2006 to fund its turnaround. This allowed Ford to avoid a federal bailout, unlike its Detroit rivals General Motors Co (GM.N: Quote) and Chrysler Group LLC FIA.MI, three years later.
Last year, Ford reported its highest net income in more than a decade and reinstated its quarterly dividend for the first time since 2006. In the period from 2009 to 2011, Ford shares have risen 370 percent.
"Our stock has appreciated under his leadership," Ford spokesman Jay Cooney said of Mulally. "So, clearly, he has delivered shareholder value."
But Ford did not improve its market share worldwide as much as it had expected and fell short of its cost performance targets in every region but Europe, according to the filing. Continued...