US:Ford CEO '05 pay: $13.3 million
Ford CEO '05 pay: $13.3 million
DETROIT (Reuters) -- Ford Motor Co. CEO Bill Ford was granted total compensation of $13.3 million in 2005, down 40 percent from 2004 as he had made a commitment last May to forgo any new remuneration until the auto unit made sustained profits.
Nearly half of that compensation was in stock options that are currently out of the money, meaning the Ford family scion will have to wait until the company's fortunes turn around before he can cash in on the package.
The No. 2 U.S. automaker disclosed in an annual proxy on Friday that Bill Ford was awarded restricted common stock grants and equivalents totaling $5.3 million and stock options totaling $7.5 million. He also received $466,755 in other compensation, including $297,201 in value for the use of corporate aircraft.
Bill Ford, whose great-grandfather Henry founded Ford in 1903, has foregone a cash salary since the company ousted former CEO Jacques Nasser in 2001.
Strong competition, soaring health care and raw material costs, and a slide in U.S. market share led Ford to announce a second restructuring for its North American operations in four years.
Saddled with a junk debt rating and facing a sharp drop in U.S. market share, Ford's restructuring plan, dubbed "Way Forward," is designed to reverse a $1.6 billion loss last year in its North American operations. Globally, however, the company made $2 billion in 2005.
In the proxy, the automaker said COO Jim Padilla, who will retire on July 1, was granted compensation of $6.8 million, while Americas President Mark Fields was granted $3.2 million in 2005. Ford CFO Don Leclair was granted $1.58 million.
The totals include salary, stock awards and option grants.
Fields' compensation included a $1 million cash retention bonus to ensure that he stays with the automaker at least until October 2007.
Fields, who was promoted to president of Americas last October and is the architect of the company's restructuring effort, will have to repay the company if he voluntarily leaves before then.
Ford also said it will reduce its number of directors to 12 from 15.
Two directors, Carl Reichardt and Marie-Josee Kravis, have decided not to run for re-election at the upcoming annual meeting on May 11, the company said.
Padilla also will not run for reelection, according to the proxy.
The proxy also said that at Ford's annual meeting in Wilmington, Del., shareholders will decide whether to remove sexual orientation from the automaker's equal employment policy.
Ford's policy now says the company won't discriminate on the basis of sexual orientation, gender, religion and other factors.
Ford has recommended that shareholders vote against this proposal. The automaker has an ongoing struggle with a conservative Christian group over its support of gay rights groups and its decision to advertise in gay publications.
The American Family Association and 19 other conservative groups reinstated a boycott against Ford over the issue.
Shareholders will also vote on a proposal that calls for limiting executive compensation and another that could strip the Ford family of much of its voting rights.
The proposal calls for converting Ford Class B stock to common stock. The Class B stock, held mostly by Ford family members, allows 16 votes per share compared to one vote per share for regular shareholders.
Ford's board of directors has recommended a vote against both proposals, the proxy said.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....