Ford CEO Jim Hackett received $17.36 million in compensation in 2019
Ford Motor Co. CEO Jim Hackett in 2019 received $17.36 million in total compensation, the Dearborn automaker reported in a Friday filing with the Securities and Exchange Commission.
Hackett's income last year, his second full year as CEO, fell 2.2% from the $17.75 million the chief executive was paid in 2018. While Hackett's base salary was steady at $1.8 million and his stock awards were up 3.5% at $13.19 million, incentive bonuses fell 32% to $1.75 million.
Ford's $6.379 billion in earnings before interest and taxes in 2019 missed the lowered guidance the automaker set of between $6.5 billion and $7 billion. The start of production of the company's redesigned Explorer SUV faced manufacturing problems, resulting in delays and fallen sales.
Hackett's compensation was 157 times more than the median employee compensation of $110,706, which was up from $64,316 in 2018 because of increased pension contributions.
The annual report filed Friday with the SEC details the pay for Ford's top executives.
Executive Chairman Bill Ford Jr. made $16.76 million in 2019. That's more than the $13.83 million total compensation he received in 2018 mostly from a $2.65 million change in pension value and deferred compensation earnings. Ford's base salary in 2019 was $1.7 million, the same as in 2018.
Jim Farley, Ford's former president of new businesses, technology and strategy who became chief operating officer last month, made a total of $8.36 million in 2019, down from $5.86 million in 2018. Farley's base salary in 2019 was $1.1 million, up from $1.07 million in 2018. Farley received a discretionary bonus that valued $185,600.
In his new role, Farley's compensation includes a $1.4 million base salary, a performance-based incentive bonus target of $1.89 million and an annual stock grant of $5 million, the automaker recently disclosed.
Joe Hinrichs, Ford's former president of automotive, received $11.02 million in total compensation in 2019. That was more than the $5.81 million he made in 2018 when he received a $97,920 bonus. Although Hinrichs did not receive a bonus in 2019, he received more in stock awards valued at $6.09 million and $2.65 million from a chance in pension value and deferred compensation earnings. Hinrichs' base salary last year was $1.3 million, up slightly from $1.1 million in 2018. Hinrichs retired last month after Ford reported its disappointing 2019 earnings results.
Tim Stone, Ford's chief financial officer, received $8.32 million for the first year the automaker publicly reported his compensation. That included a $783,338 base salary, a $1.48 million discretionary bonus, $4.3 million in stock awards and $742,500 in incentives.
Bob Shanks, Ford's former chief financial officer, was paid $8.32 million in total compensation in 2019, down from $8.42 million in 2018. His base salary was $1 million, up from $971,250 in 2018.
All of Ford's top 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 receive the bonuses included in their total pay. These incentive bonuses ranged from $1.75 million for Hackett to $486,000 for Bill Ford.
Farley's was $742,5000, Hinrichs' was $850,500, Stone's bonus was $742,500 and Shanks' was $675,000.
Ford also paid $419,275 for Bill Ford's personal use of company aircraft and $899,219 for security. The company paid $91,523 for Hackett's use of the aircraft. Stone received $692,652 to relocate from California.
Hackett's compensation in 2019 tops that of Fiat Chrysler Automobiles NV CEO Mike Manley, who received $12.46 million. GM has not yet reported 2019 salaries.
The Detroit automaker typically releases its annual report in April. GM CEO Mary Barra was the highest-paid executive of Detroit's three automakers in 2018, earning $21.87 million.
Tesla Inc. also has not filed its proxy statement. In 2018, Elon Musk, CEO of the Silicon Valley electric-vehicle maker, received $2.28 billion in total compensation — the most by far, according to The New York Times, of the largest 200 publicly traded corporations in the United States.