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VOL. 38 | NO. 13 | Friday, March 28, 2014
Ford CEO's pay up 11 pct to $23.2 million in 2013
DETROIT (AP) — Ford CEO Alan Mulally's compensation rose 11 percent to $23.2 million in 2013, as the company reported record profits in North America and Asia.
Mulally earned $2 million in salary, the same as 2012. But he earned more in bonuses, at $5.9 million, and in stock and option awards, which totaled $14.6 million.
The company's board noted that Mulally helped keep the company's European restructuring on track. It said Ford exceeded internal profit and cash flow targets, and noted that the Dearborn, Mich.-based company doubled its dividend in 2013. But the board said Ford missed internal targets for market share increases and quality improvement.
Ford earned a record pretax profit of $8.8 billion in North America and a record profit of $415 million in Asia last year. Ford saw strong demand worldwide for small SUVs like the Escape, EcoSport and Kuga last year. In the U.S., sales of the F-Series pickup truck jumped 18 percent as the economy continued to improve.
Mulally's compensation included $232,153 for personal use of private plane.
Mulally, 68, announced in January that he would stay at Ford at least through the end of this year, putting to rest rumors that he might leave to become CEO of Microsoft.
Mulally has made $197.65 million since joining Ford in 2006, according to the AP's calculations. He led a major restructuring at the automaker, cutting costs by closing factories and globalizing its product offerings worldwide. Ford has earned $42.4 billion since returning to profitability in 2009.
The filing also said that Bill Ford, the company's executive chairman, earned $12 million in 2013. That was higher than his $11.6 million compensation in 2012.
Ford reported compensation for Mulally and other executives Friday in its annual proxy filing with the federal government.
Ford's shares rose 20 cents, or 1.3 percent, to $15.45 in trading Friday. They have risen 17.5 percent over the past year.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in some cases from the total reported by companies to the Securities and Exchange Commission.
The company also announced Friday that it will hold its annual meeting in Wilmington, Del,, on May 8.