Fields (Richard Drew / AP)
Ford CEO Mark Fields, who succeeded the retiring Alan Mulally on Tuesday, will get a significant pay bump as part of his new job, and a number of perks including increased stock options and use of a private jet.
Fields will get a salary and bonus package worth $5.25 million this year. That includes a $1.75 million base salary — up from his $1.54 million base salary in 2013 as Ford’s chief operating officer — plus $3.5 million in incentive compensation. And the company is offering him options to buy more than 710,000 shares of stock at an exercise price of $17.21 per share, which compensation analyst GMI Ratings values at more than $3 million.
Last year, Mulally received $2 million in salary and $5.88 million in bonus.
Ford revealed Fields’ compensation Wednesday in a regulatory filing.
“This is not jaw dropping for the executive compensation world,” Gary Hewitt, managing director and head of research at New York-based GMI, said in an interview with Bloomberg News. “This reflects a decision by the board to raise his 2014 compensation to CEO levels, but they haven’t pushed it to stratospheric levels.”
Fields may receive other stock grants as part of his promotion that may not be revealed until Ford files its proxy statement next year, Hewitt said.
The Dearborn-based company, citing security reasons, will require Fields and his family to use a corporate jet to travel back and forth from his home near Miami — a privilege Fields enjoyed before the recession and auto crisis.
Fields was criticized in the past for using Ford’s corporate aircraft to visit his family in Florida and began flying commercial in 2007.
Use of the Ford corporate jet for personal travel was part of Fields’ compensation agreement when he became head of Ford’s Americas group.
Mulally will retain access to Ford’s corporate aircraft and company-paid housing through Aug. 31, the filing said.
Those benefits totaled $406,065 in 2013, according to a Ford regulatory filing.
He also will retain $13.8 million in stock awards received in March for his performance.
Even with the options, Fields has a long way to go to match Mulally’s total package of $23.2 million last year.
Mulally’s 2013 compensation — which included stock and option awards, plus personal expenses — included $2 million in salary, a $5.88 million cash bonus and more than $11 million in stock awards, according to the automaker’s March proxy filing.
In 2013, Fields, then COO of the Dearborn automaker, earned a total about $10.2 million, including a base salary of $1.54 million and a bonus of $996,000, according to Ford’s March filing.
Fiat SpA said CEO Sergio Marchionne, also head of Chrysler Group LLC, earned $5 million in cash compensation in 2013, about $1.2 million less than he made in 2012. General Motors Co. CEO Mary Barra, who took over as the automaker’s top executive in January, could earn more than $14.4 million this year.