Published — Saturday 16 March 2013
Last update 16 March 2013 3:45 am
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.