FoMoCo today submitted documents to the Securities and Exchange Commission that show that CEO Alan Mulally’s total compensation was cut 37 percent last year. Including cash, stock and stock options, Mulally’s total compensation is worth more than $13.5 million.
Mulally’s salary totaled $4.9 million in 2008 with $8.7 million in stock option. However, Mulally’s $8.7 million stock options are worth less since he is unable to exercise them unless Ford’s stock increases. Some of Mulally’s stock options may not be exercised until Ford’s stock starts trading at $6.14 or higher. Ford’s stock closed today at $2.80.
Ford said that it will reduce Mulally’s salary another 30 percent in 2009 and 2010 and will eliminate merit pay increases and bonuses for all of its U.S. salaries employees.
Mulally earned $21.7 million in 2007.
– By: Omar Rana
Source: Detroit News