Mark Fields, the chief executive officer of Ford Motor Company received $18.6 million compensation last year, according to the automaker on Friday.
His compensation was lower than the $23.2 million compensation received by the automaker’s former CEO Allan Mulally in 2013. Last year, Mulally made $22 million in salary and other compensation in 2014.
Fields served as COO of the automaker before succeeding Mulally as CEO on July 1, 2014. His total compensation was 50% as COO and 50% as CEO last year. He received $10.2 million compensation as COO in 2013.
According to a spokesperson at Ford, the board of directors of the automaker decided to grant Mulally a full-year stock award due to his impact on the company’s performance.
Ford indicated in its 2014 annual report that Mulally would retain the performance-based stock awards he received in March 2014 following his retirement from the company.
Ford also stated that its compensation committee determined on February 11, 2015 that Mulally is “eligible to receive a non-prorated award under company’s annual incentive compensation plan for the 2014 performance period.”
Ford compensation package for Fields
Ford also indicated in its 2014 annual report that the compensation committee of the board of directors approved the following compensation package for Fields when he assumed as president and CEO of the company:
Fields will receive a cash base salary of $1.75 million as president and CEO, a grant of 710,227 stock options with an exercise price of $17.21, and an increase in annual incentive compensation plan target to 200% of his annual base salary for the 2014 performance period. He is also required to use private aircraft when travelling for safety and to maximize his availability for company business.
Ford remains committed to aligning executive compensation
In a statement, Ford said, “We remain absolutely committed to aligning executive compensation with the company’s business performance and to tying a significant portion of executive compensation to long-term shareholder value.”
Ford Executive Chairman Bill Ford received $15.1 million last year, higher than the $12 million he made a year earlier.
Ford achieved $6.3 billion in pretax profit and $3.2 billion in net income last year. The automaker posted $8.6 billion in pretax profit and $7.2 billion in net income in 2013.