Ford Motor Co.'s new chief executive Alan Mulally will receive $18.5 million in one-time compensation to join the troubled automaker, the company said in a regulatory filing on Friday.
Mulally will receive a hiring bonus of $7.5 million and $11 million to offset the compensation he gave up at Boeing Co., Ford said.
Mulally, who is credited with turning around Boeing's commercial airplane division, will also be paid a base salary of $2 million per year, Ford said in the Securities and Exchange Commission filing.
The new Ford CEO was named this week to replace Bill Ford Jr. in a move that comes as the automaker struggles to reverse mounting losses and dwindling U.S. market share.
At Boeing, Mulally was among the top paid executives in 2005 with a package of about $9.96 million. That included a $7.58 million long-term incentive payout in addition to his $825,000 salary, a $736,300 annual bonus, plus restricted stock awards and other perks.
In comparison, General Motors Corp. Chief Executive Rick Wagoner made $5.5 million in 2005, which included a salary of $2.2 million and stock options worth about $2.9 million, according to regulatory filings.
Apart from the base salary, Ford granted Mulally 600,000 restricted stock units that vest in equal installments over three years. Based on Friday's $8.77 closing stock price, that grant was worth an additional $5.26 million.
In addition, Mulally will also be granted options on 3 million Ford shares vesting over three years with an option price of $8.28 cents a share.
He will also receive an option on 1 million shares based on the performance of Ford's common stock. Mulally is entitled to the full option grant if Ford stock recovers to at least $30 a share and stays there for 30 trading days, according to the SEC filing.