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Ford Motor Co.'s new chief operating officer could see up to a 32% pay increase, the Dearborn automaker revealed Tuesday in a federal filing.

Ford's board of directors increased Jim Farley's annual compensation package to a potential $8.29 million from $6.295 million effective March 1.

Since April, Farley, 57, had been Ford's head of new businesses, strategy and technology. Earlier this month, the Blue Oval said Farley was being promoted to chief operating officer. The promotion came as the company said Joe Hinrichs, Ford's president of automotive, was retiring at the age of 53 following poor 2019 financial results.

"The compensation reflects his better role, and it is comparable to people with similar positions in large, publicly traded corporations," Ford spokesman T.R. Reid said.

Farley's compensation will include a $1.4 million base salary, a 27% increase from his current $1.1 million pay. His performance-based incentive bonus target is now $1.89 million, up 37% from $1.375 million. And his annual stock grant has been upped to $5 million, a 31% increase from $3.82 million.

In his new role, Farley will oversee Ford's global automotive business and look to converge the traditional retail business with the new mobility sector focused on autonomous, connected and electric vehicles. His promotion also positions him as the top contender to replace 64-year-old CEO Jim Hackett.

Final CEO compensation for 2019 for the Detroit Three automakers is expected to be announced this spring. Hackett received $17.75 million in total compensation in 2018. General Motors Co. CEO Mary Barra's $21.87 million package was the most of the three companies that year.

Executive compensation was a frequent criticism among United Auto Workers members last year during labor negotiations. The new contracts guarantee wage increases over the four-year term.

bnoble@detroitnews.com

Twitter: @BreanaCNoble

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