Tuesday, automaker Ford Motor Co. (F), in a proxy filing with the U.S. Securities and Exchange Commission providing details of its 2009 annual meeting to seek shareholders approval for issuing common stock, said its Chief Executive Officer Alan Mulally's salary, without bonus, declined 78% to $2 million in 2008 with a further 30% reduction due for 2009 and 2010.
The Dearborn, Michigan-based company stated that a preliminary proxy statement was filed to seek shareholders approval to issue common stock related to the company's recent agreement with the United Auto Workers and the Voluntary Employee Beneficiary Association or VEBA.
Ford indicated that it is requesting the shareholders approval to facilitate the previously announced option permitting the company to meet up to 50% of its cash obligations to the VEBA by contributing common stock.
The proxy filing, apart from providing the venue and schedule for the company's annual meeting, lists compensation changes made by Ford to decrease costs and conserve cash in response to the difficult global economic climate.
Highlights include, among others, a 30% reduction in President and CEO Alan Mulally's salary for 2009 and 2010, elimination of 2009 merit increases for salaried employees in the U.S. and most other global markets, elimination of Annual Incentive Compensation Program bonuses for 2008 and 2009 performance periods for global salaried employees. The filing also underlines that there would be no cash compensation for members of Ford's Board of Directors in 2009.
The proxy also provides details of total 2008 compensation for five named executive officers. Leading the list is CEO Alan Mulally who earned $2.0 million in salary and no bonus in 2008. His total cash compensation, salary and bonus including non-equity incentive plan compensation, declined 78% from the prior year. Mulally's total listed compensation, including the amount the company expensed in 2008 for the value of long-term stock options and other stock-based awards, declined 37% to $13.57 million.
Lewis Booth, Ford's Executive Vice President and CFO, with a 66% decline in cash compensation earned $1.08 million in salary and no bonus in 2008. His total listed compensation declined 54% to $4.74 million.
Mark Fields, Ford's Executive Vice President and President, The Americas, earned $1.3 million in salary and no bonus in 2008. Fields cash compensation declined 68%. His total listed compensation declined 42% to $4.83 million.
Jim Farley, Ford group's vice president, Marketing and Communications, earned $0.7 million in salary. He received a bonus award of $0.66 million. However, the filing clarified that bonus was related to a 2007 employment agreement to attract him from Toyota and offset the value of certain compensation he was forfeiting there. His total listed compensation was $2.65 million.
David Leitch, Ford Group Vice President, General Counsel earned $0.85 million in salary. Leitch received a retention bonus of $0.15 million granted in 2006. His total listed compensation was $2.62 million.
Ford Motor closed Tuesday's regular trading at $2.86, down 4 cents or 1.38%, on a volume of 40.44 million shares on the NYSE. In after-hours, the stock lost a penny or 0.35%, trading at $2.82.
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