- The Washington Times - Thursday, April 5, 2007

Alan Mulally, Ford Motor Co.’s new chief executive officer, received $39.1 million in compensation during his first four months on the job last year, when the nation’s No. 2 automaker posted a record $12.7 billion loss, according to a regulatory filing yesterday.

Mr. Mulally succeeded Bill Ford at the helm of the Dearborn, Mich., company Sept. 1.

Ford reported the largest loss in its 103-year history last year and expects more losses this year and next. The company expects to return to profitability in 2009.

Mr. Mulally was paid a salary of $666,667 in 2006, a prorated amount based on the $2 million annual salary that the company agreed to pay him, according to Ford’s proxy statement filed with the Securities and Exchange Commission.

Mr. Mulally also received a $7.5 million hiring bonus and $11 million to offset performance and stock-option awards that he forfeited when he left his previous employer, aircraft maker Boeing Co.

He got other compensation totaling $334,433, which included $172,974 for required use of corporate aircraft and $55,469 for relocation costs and temporary housing.

Ford also gave Mr. Mulally stock and options awards that had an estimated value of $19.6 million when they were granted his first day on the job, the company said.

Bill Ford received other compensation valued at $393,848, including $185,232 for required use of corporate aircraft and $85,708 for security.

The company also gave him stock and option awards that had an estimated value of $4.9 million when they were granted March 10, 2006, but they were converted to shares of common stock and donated to charity.

The Associated Press calculates total pay including executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock and option awards granted during the year. The calculations don’t include changes in the present value of pension benefits or the company’s cost of stock and options granted before 2006, and the figures can differ from the company’s total.

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