Michigan: Ford Motor cut chief executive Alan Mulally's compensation by 29 per cent last year after the second-largest United States automaker fell short of its targets for profit, cash flow and market share.Mulally received $2 million in salary, $3.95 million in bonus and $15 million in stock, options and other compensation, Dearborn, Michigan-based Ford said on Friday in a regulatory filing.
That compares to $2 million in salary, $5.46 million in bonus and $22 million in other compensation for 2011. Ford is restructuring its European operations and adding plants in China to curb losses in those regions, which drag on the company as it relies on profits in North America.
Ford achieved just 3 per cent of its target for global market share and 32 per cent of its goal for automotive operating cash flow.
That reduced the bonus paid to Mulally, 67, who has received $162 million in compensation since joining Ford in 2006 from Boeing, according to data.
"To the mass majority of people, these are enormous numbers," David Whiston, an equity analyst with Morningstar Inc. in Chicago, said in a phone interview.
"But is it excessive? It really depends on who you ask. Ford shareholders, especially those that bought in the low-single digits, are probably thinking Mulally's worth every penny."
Ford's stock, which traded below $2 four years ago, rose 20 per cent last year, outpacing the Standard & Poor's 500 Index's 13 per cent climb. The shares rose 0.1 per cent to $13.45 at the close in New York on Friday.