says its cost-cutting has reached the executive suite.
This year and next, CEO Alan Mulally will take a 30% pay cut, the automaker said Tuesday, in a filing with the
Securities and Exchange Commission
. Also, three top executives including Mulally received no bonus in 2008, while two others received bonuses related to agreements signed in 2006 and 2007.
Additionally, for 2009, merit increases for most salaried employees have been eliminated; incentive bonuses for global salaried employees have been eliminated; and directors will receive no cash compensation.
"Ford is acutely aware that current economic conditions have had a significant adverse impact on our shareholders, customers, dealers, employees and other stakeholders," the company said in a preliminary proxy statement. "We do not view these actions as merely symbolic, but as a necessary step in the restructuring of our business in which all our stakeholders have been asked to participate."
The proxy provides details regarding 2008 compensation for five named executive officers. Mulally earned $2 million in salary, as his total cash compensation declined 78% from a year earlier. His total listed compensation, including expenses for stock options and other stock-based awards, was $13.6 million. Ford said the value of the stock-based awards may vary from what it is required to report.
Mullaly has moved a bit since the November hearing when the Detroit Three CEOs were grilled by Congress regarding their private planes and high salaries. Asked by a congressman whether he would be willing to work for a dollar a year, Mullaly responded: "I think I'm OK where I am."
Meanwhile, CFO Lewis Booth earned $1.1 million in salary, while his listed compensation was $4.7 million. President Mark Fields earned $1.3 million in salary, while his listed compensation was $4.8 million. Jim Farley, group vice president, earned $700,000, a bonus of $660,000 related to a 2007 employment agreement and listed compensation of $2.6 million. David Leitch, general counsel, earned $850,000 in salary, a bonus of $150,000 related to a 2006 retention award and listed compensation of $2.6 million.