Mulally's Compensation Cut After Missing 2012 Goals

2012 saw a lot of record sales months for automakers in the U.S. market, but for automakers with a significant presence in global markets, chronic weakness in the European markets dragged down results. Ford, which has been a major player in the European market for decades, dealt with billions in losses in that market for 2012, which offset strong North American and emerging-market performance. Consequently, Ford CEO Alan Mulally's total compensation was cut from 2011 to 2012.

Mulally's $2 million base salary remains unchanged from 2011, but his bonus was cut from $5.46 million in 2011 to $3.95 million in 2012. His other compensation, in the form of stock and options, went from $22 million in 2011 to $15 million for 2012. The compensation figures were disclosed in a regulatory filing and reported by Bloomberg.

Even with the cuts, Mulally's compensation puts him at or near the top of automaker executive pay. Volkswagen CEO Martin Winterkorn received $18.9 million in compensation for 2012. Nissan/Renault CEO Carlos Ghosn got $10.3 million, and General Motors CEO Dan Akerson received $9 million in 2012, up from his 2011 compensation of $7.7 million.

However, viewed in the long-term from the investor standpoint, Mulally's tenure as chief executive has been great for Ford stock, which was trading below $2 per share four years ago. Today, Ford stock is around $13 per share. Its 2012 performance out-paced the Standard & Poor's 500 index, which posted a 13 percent annual gain. Ford stock rose 20 percent over the same period.

Source: Bloomberg

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