DEARBORN, Mich. (AP) — Former Ford CEO Alan Mulally's compensation fell 5 percent to $22 million in his final year at the company, reflecting lower profits as the company invested heavily in new vehicles and plants.
Ford reported 2014 compensation Friday in its proxy filing with the federal government. The company also announced that its annual meeting will be held May 14 in Wilmington, Delaware.
Mulally, 69, retired July 1. As a result, he earned $1 million in salary compared with $2 million in 2013. He did not receive a bonus in 2014, but did earn $13.9 million in stock and option awards, down 5 percent from a year ago.
Among his benefits upon retirement: A free car.
In his eight years at Ford, Mulally earned a total of $219.65 million. His pay was the subject of some anger at Ford's manufacturing plants. But he was widely credited with bringing the company back to profitability after its near-bankruptcy in 2006.
"We remain absolutely committed to aligning executive compensation with the company's business performance and to tying a significant portion of executive compensation to long-term shareholder value," Ford said Friday in a statement.
Mulally's successor, Mark Fields, saw his total compensation jump 47 percent to $14.9 million. Fields became Ford's president and CEO on July 1. Before that he was the company's chief operating officer.
Fields' salary rose 8 percent to $1.7 million. His stock and option awards nearly doubled to $9.7 million. He also received no bonus.
The Dearborn-based automaker's net income fell 56 percent to $3.2 billion in 2014 as it introduced a record 23 new vehicles. The board said Ford's executives exceeded their quality and cash flow targets but fell short of targets for revenue and operating margins. Ford's revenue dropped 2 percent to $144.1 billion.
Ford's chairman, Bill Ford, earned $10.7 million, down 11 percent from 2013. Included in his compensation was $766,445 for security, a benefit not listed for Ford's other executives.
The Associated Press formula for executive compensation includes salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. It does not count changes in the present value of pension benefits, which makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.