Ford slashes CEO’s pay



REUTERS

Published — Saturday 16 March 2013

Last update 16 March 2013 3:45 am

| نسخة PDF Print News | A A

DEARBORN, Michigan: Ford Motor Co slashed the 2012 compensation of its chief executive officer by 29 percent, in part because the No. 2 US automaker missed some key goals for market share, profit and cash flow, the company said.
Alan Mulally, who has led Ford since 2006, received $ 2 million in salary and nearly $ 4 million in cash bonuses, Ford said in its preliminary proxy filing. His overall pay was $ 21 million, including stock awards, options and other perks. That compares with an overall package of $ 29.5 million in 2011. This included a one-time restricted stock grant, worth $ 8 million at the time, for the CEO’s role in reducing the number of Ford’s vehicle platforms, a move that could cut costs and complexity.
“We believe our 2012 performance clearly shows our management team performed exceedingly well in a difficult environment,” Ford said in its proxy statement. Mulally, 67, is credited with spearheading Ford’s turnaround by mortgaging the automaker’s assets, including the Blue Oval logo, and executing his “One Ford” strategy to cut costs.
Ford beat its goals for cost controls and quality last year, but fell short of its benchmarks for profit and cash flow, two areas of heavy focus. In 2012, Ford met about 75 percent of its performance targets, Ford said in its proxy.
Ford’s pretax profit was $ 8 billion, lower than the $8.7 billion aim. Its global automotive operating-related cash flow was $ 3.4 billion, less than the desired $ 4.6 billion.
Ford said it met only 3 percent of its market-share target.

What's happening around Saudi Arabia

RIYADH: A number of parents have complained about the lack of hygiene in schools, expressing fears about the potential spread of the MERS virus with the beginning of the new academic year. This comes in the backdrop of another death due to the deadly...
JEDDAH: Disputes over sharing of property or inheriting family business are common. But Dhahran has witnessed an unusual fight among four brothers — over donating kidney to their youngest brother.Coincidentally, all the brothers were found fit to don...
JEDDAH: A number of visually impaired citizens are expecting candidates to address their problems and make life easier for them after winning the Dec. 12 municipal elections.A section of these voters have also sought special programs so that they can...
RIYADH: The Ministry of Interior recently launched a series of training programs to upgrade the efficiency of its female staff as a new step to empower women and give them an opportunity to shine in security-related fields.Maha Frehi, the manager of...
RIYADH: Sixty-one Filipinos, who met with a vehicular accident on the day of Arafat on Nov. 5, 2011, hope to come to the Kingdom as the guests of Custodian of the Two Holy Mosques King Salman.Most of them could not complete the Haj rituals because of...
JEDDAH: At the start of each academic year, parents face a common and expected problem — their children are afraid of going to school.After spending five years in the arms of their mothers and siblings, children know leaving home means entering a new...

Stay Connected

Facebook