Ford CEO Fields Receives $1.75 Million Base Salary -- Update

By Anna Prior and Mike Ramsey 

Ford Motor Co's new chief executive, Mark Fields will receive annual salary of $1.75 million, slightly less than his predecessor, Alan Mulally, as he takes the helm of the second largest U.S. auto maker.

Details of the compensation, disclosed in a regulatory filing Wednesday, show Mr. Field's pay package also includes a grant of 710,227 stock options, which have an exercise price of $17.21. The package also has a performance bonus of up to 200% of his base salary, or $3.5 million.

Mr. Fields officially took over Tuesday for Mr. Mulally, who retired from his posts as CEO and president.

Last year, Mr. Mulally received a base salary of $2 million, with the whole compensation package, including stock awards and bonuses, totaling $23.2 million, according to a regulatory filing earlier this year.

Mr. Fields' final compensation, which will include restricted stock grants that vest, will likely be much higher than the $5.25 million reported Wednesday. Mr. Fields, who was chief operating officer, had compensation of $10.2 million in 2013. While his base salary is $250,000 lower than Mr. Mulally's was, his performance bonus of 200% of salary compares with Mr. Mulally's bonus of 175% of salary.

"We continue to believe in aligning executive compensation with the company's business performance and long-term shareholder value," said Susan Krusel, a Ford spokeswoman, in a statement. "That's why more than 70 % of our senior executive compensation is performance-based--tied to Ford's business performance and stock performance."

Mr. Mulally will retain the performance-based stock awards he received in March, and the company will continue its housing and travel arrangements with Mr. Mulally for a period of transition through Aug. 31, the company said in Wednesday's filing.

Mr. Fields is a Ford veteran who survived management turmoil in the years before Mr. Mulally's 2006 arrival from Boeing Co. Mr. Fields has won praise along with Mr. Mulally for getting Ford's diverse operations to function as a single business with shared parts, models and goals.

Mr. Fields faces a very different set of challenges than those the former boss had tackled over the last eight years.

When Mr. Mulally arrived in 2006, Ford's main troubles were inside the company--a dysfunctional culture, mounting losses, poor product quality and unending turf battles that hamstrung its performance.

Mr. Fields, however, takes the reins of a company that is expanding and profitable. However, he can't slow the changes intended to make the results-oriented management style instilled under Mr. Mulally continue. He will also have to keep Ford's profits in North America rolling and stanch losses in Europe.

Write to Anna Prior at [e-mail]

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