Ford CEO Jim Hackett made $16.7 million last year
Dearborn — Ford Motor Co. paid new CEO Jim Hackett $16.73 million in 2017. The automaker disclosed its top executives’ pay in a Thursday filing with the Securities and Exchange Commission.
The amount paid to Hackett is less than the $22,102,498 the company paid former CEO Mark Fields for all of 2016. The Blue Oval ousted Fields in late May last year, but paid him $21 million in 2017. Hackett officially took over on May 19.
The document filed Thursday with the Securities and Exchange Commission details the pay for Ford’s top executives, all of whom have new or expanded roles under Hackett. Joe Hinrichs, president of global operations, and Jim Farley, president of Global Markets, both got pay increases.
Executive pay other than Hackett’s includes:
■Bill Ford Jr., executive chairman: Bill Ford Jr. made $15.63 million last year, which included a $1 million incentive-based bonus. That’s more than the $13,862,938 in total compensation he received in 2016. His base salary dropped to just over $1.6 million in 2016. In 2017, it increased to $1.65 million.
■Joe Hinrichs, executive vice president and president of global operations: Hinrichs’ pay nearly doubled. He made $12.12 million last year, up from the $6,723,531 in total compensation he received in 2016. His 2017 pay included a $1.08 million base salary, and a $1.09 million incentive-based bonus. Hinrichs was appointed to president of global operations under Hackett in 2017. Much of his pay bump is die to stock awards given in 2017.
■Jim Farley, executive vice president and president of global markets: Farley made $13.47 million last year. That’s more than double the $6,609,453 in total compensation he received in 2016, when he was running Ford’s Europe, Middle East and Africa operations. The 2017 pay included a $973,417 base salary, and a $1 million incentive-based bonus. Under Hackett, Farley is head of Ford’s global markets, which involves developing global product plans. Farley was paid a $200,000 discretionary bonus in 2017 for his performance in 2016.
■Bob Shanks, executive vice president and chief financial officer: Shanks made $6.74 million in 2017, which is more than the $6,293,462 in total compensation he received in 2016. Shanks was paid a $309,750 bonus in 2017 for his performance in 2016. His total 2017 earnings included a $885,000 incentive-based bonus.
Bill Ford, Hackett, Hinrichs, Farley, Shanks and Fields all received incentive-based bonuses in 2017, which was included in their total pay. The executives had to meet performance goals in quality, automotive-segment operating cash flow and operating margin, Ford Credit pre-tax profit and automotive revenue to get those bonuses.
Hackett received a $3.6 million incentive-based bonus last year, as did Fields.
The company paid $384,529 for Bill Ford’s personal use of the company’s aircraft, and $957,225 for personal security. Ford paid $282,661 for Fields’ use of the jet.
The Blue Oval will conduct its annual meeting of shareholders online again this year. The Virtual Annual Meeting will take place at 8:30 a.m. May 10. Shareholders can listen, vote and submit questions virtually by logging in at www.virtualshareholdermeeting.com/FORD2018.
Ford and General Motors Co. report their executive salaries differently than Fiat Chrysler Automobiles NV, which does not include some stock and potential performance-based equity awards. GM has not yet reported 2017 salaries.
Ford reported as part of the proxy filing that the median annual total compensation of all its employees other than Hackett was $87,783. FCA did not report this number, because the company reports executive pay differently than Ford.
Fiat Chrysler CEO Sergio Marchionne was paid 9.67 million euros (nearly $12 million) in compensation in 2017, slightly more than he made in 2016, but falling short of 2015 totals when including millions of dollars in stock grants.
Marchionne’s base salary in 2017 totaled 3.5 million euros ($4.3 million), and he earned a 6.1 million-euro ($7.57 million) bonus based on 2016 performance, according to an annual statement issued by the Italian-American automaker in February and filed with the Securities and Exchange Commission.
He received 2.79 million shares of FCA stock which have a current value of 28.98 million euros ($35.77 million), and cover the three-year period from 2014 to 2016 during which Marchionne received no shares.
GM typically releases its annual proxy in April. GM Chairman and CEO Mary Barra was the highest-paid executive in the Detroit Three in 2016, earning $22.58 million. That was down from the $28.59 million she made in 2015. Her 2016 pay included a $2 million base salary, up from $1.75 million in 2015, and $13 million in stock awards, according to GM’s preliminary filing with the U.S. Securities and Exchange Commission.