New Ford CEO could get as much as $13.4M in ’17
Ford Motor Co.’s newly named CEO Jim Hackett is getting a raise from his former position at the company.
Hackett will receive an annual salary of $1.8 million and an accession bonus of $1 million, the Dearborn automaker said in a Wednesday regulatory filing. And with other incentive- and performance-based pay and stock, Hackett could receive as much as $13.4 million in 2017 as CEO, though it’s possible the compensation could actually be higher based on any other stock awards he received earlier this year.
Hackett, 62, was named Ford’s new CEO on Monday, replacing Mark Fields after nearly three years. Hackett, who had been chairman of Ford Smart Mobility, also will receive a performance-based, restricted stock grant valued at $5.25 million; a time-restricted stock grant worth $1.75 million that will vest in thirds starting May 22, 2018 through May 22, 2020; and an annual incentive compensation plan target this year at 200 percent of his base salary — or up to $3.6 million. Hackett earned $716,000 in salary in his previous position at Ford.
Fields, 56, was paid more than $22 million in total compensation last year, up by more than $3 million from what he received in 2015. Fields’ 2016 compensation included a base salary of $1,787,500.
While Fields’ 2017 salary as CEO has not been disclosed, it’s likely to be about the same as what Hackett is receiving based on past annual increases.
Hackett also was elected to the Ford board of directors, effective May 19. Fields will retire from the company effective Aug. 1 and resigned from the board, effective immediately.
Fields has worked for the automaker for 28 years. He and Ford have entered into a separation agreement that includes eligibility for an annual incentive bonus pro-rated from Jan. 1 through Aug. 1; retention of 2017 long-term incentive plan grants including time-based stock and performance-based stock over a three-year performance period; participation in Ford’s 2017 select retirement program and “reasonable use” of company aircraft until Aug. 1.
Personal use of company aircraft is a perk for both the Ford CEO and Executive Chairman Bill Ford Jr. For security reasons, the company does not permit either to fly commercially. In 2016, Fields’ personal use of aircraft totaled $288,965, up from $240,726 the year before. Ford’s personal use of aircraft totaled $189,489 last year and it was $291,151 in 2015.
The U.S. Securities and Exchange Commission filing did not provide any estimate of how much Fields could receive as part of the final separation agreement, and the figure likely won’t be available until Ford’s proxy statement comes out next year.
Joe Hinrichs, who this week was named executive vice president and president of global operations, will receive a $5 million, time-based restricted stock grant, according to the filing. Hinrichs has served as president of the Americas for Ford and last year received compensation totaling $6.72 million.