By Christina Rogers
Ford Motor Co.'s Chief Executive Mark Fields earned $18.6
million in total compensation during a challenging first year at
the helm of the second largest U.S. auto maker.
Mr. Fields, a veteran Ford executive who took the top job in
July, oversaw the launch of several new vehicles and continued the
string of solid results. However, Ford lowered guidance for
important financial metrics, including profits and revenue.
The 54-year-old Mr. Fields succeeded Alan Mulally, Ford's CEO
for eight years starting in 2006. During Mr. Mulally's tenure, Ford
streamlined its business and rebuilt its finances.
Mr. Mulally's listed compensation over nearly a decade in Ford's
top job exceeded $200 million. In 2014, he received a $22-million
pay package in 2014, including $3.2 million under the auto maker's
incentive bonus plan.
Ford Executive Chairman Bill Ford was awarded $15.1 million in
compensation last year. The compensation figures were outlined in
the company's annual proxy report.
The Dearborn, Mich., auto maker reported $3.2 billion in net
income last year amid steady profitability in North America. But
the company continues to face challenges in Russia and South
America, where weak economic conditions and other factors are
crimping auto sales.
Ford had said it would break even in Europe this year, but
backed off that goal shortly after Mr. Fields took the helm. Ford's
share price over the course of 2014 was flat, opening the year at
$15.42 and closing at $15.50. The total return for shareholders
last year was 3.7%, including dividends, compared with 13.7%
returned by the S&P 500.
Mr. Fields is now under pressure to deliver better results. He
has called 2015 a breakthrough year for the auto maker, and expects
momentum after last year was marked with sales declines in some of
Ford's most important products and region.
The compensation figures also come as Ford, General Motors Co.
and Fiat Chrysler Automobiles NV are about to head into
negotiations with the United Auto Workers union. A new four-year
deal for 135,000 UAW workers is scheduled to be signed in
September.
Other top Ford executives were given merit raises in 2014,
according to the proxy. Chief Financial Officer Bob Shanks,
Americas Chief Joe Hinrichs and Europe Chief Jim Farley were listed
as getting merit raises of around 3% -- in line with the average
for the salaried workforce. Mr. Fields was also given an additional
9.4% bump. Hinrichs received a 13% raise midyear.
UAW President Dennis Williams and other union leaders have
called out the high-dollar executive pay package to bolster their
argument for giving factory workers a pay raise. Hourly workers
making the top wage of roughly $28 an hour haven't received a raise
in about a decade.
Fiat Chrysler reported earlier this month Chief Executive Sergio
Marchionne received EUR31.3 million ($33.6 million) in total pay in
2014. That included a EUR24.7 million ($26.7 million) in bonuses
and stock awards tied to Fiat's takeover of Chrysler last year and
the auto maker's restructuring that led to a primary stock-market
listing in New York.
Among U.S. auto executives, Mary Barra, who became CEO of GM in
January last year, is expected to receive a 2014 pay package of as
much as $14.4 million.
Write to Christina Rogers at christina.rogers@wsj.com
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