Ford to give Mulally bonus payment after he retires
February 19, 2013
DETROIT (Bloomberg) -- Ford Motor Co. is planning to pay a bonus to CEO Alan Mulally after his employment ends as a reward for leading the automaker through its turnaround.
The payment will be based on Ford's contributions to Mulally's company retirement and benefit equalization plans, the company said today in a regulatory filing. Ford reported net income of $5.67 billion for 2012 and its shares climbed 20 percent, outpacing the Standard & Poor's 500 Index's 13 percent rise.
The agreement for the payment was dated Feb. 13 and is "a clarification of a prior agreement," Jay Cooney, a company spokesman, said in an interview. "Nothing has changed."
No amounts were disclosed in the accord.
Ford reclaimed investment-grade credit ratings and paid out its first dividend since 2006 on the strength of its namesake brand, the only vehicle line to top 2 million U.S. sales last year. Mulally, 67, has instituted a global product development plan called One Ford to boost profits by selling the same models globally, rather than different versions for various regions.
Ford has earned $35.2 billion the past four years after losing $30.1 billion from 2006 through 2008. Executive Chairman Bill Ford elevated Mark Fields to COO in December from president of the Americas, positioning the 23-year veteran of the company to succeed Mulally after 2014.
Mulally's compensation for 2012, including salary and benefits, will be revealed later this year in the company's proxy statement. Ford rewarded Mulally with stock worth $58.3 million in March of last year and $56.6 million a year earlier.
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