New Ford CEO eligible for $13.4m in annual compensation

Ford Motor Co. said on Wednesday that new Chief Executive James Hackett is eligible for at least $13.4 million in total annual compensation.

Former Ford CEO Mark Fields could walk away with $57.5 million severance, according to Bloomberg.

Hackett will earn a $1.8 million annual salary, up from $716,000 at his previous job as chairman of the Ford unit developing self-driving cars and related projects.

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Fields agreed to resign May 19 after the board lost confidence in his ability to embrace the rapidly changing nature of transportation while managing through a declining US auto market.

In March, Ford said Mr Fields received total compensation of US$22.1 million for 2016, up almost 19 percent from US$18.6 million.

Hackett takes over from Mark Fields, who is retiring after 28 years with the manufacturer.

Fields and Ford have entered into a separation agreement that includes eligibility for an annual incentive bonus pro-rated from January 1 through August 1; retention of 2017 long-term incentive plan grants including time-based stock and performance-based stock; "reasonable use" of company aircraft until August 1 and participation in Ford's 2017 select retirement program.

Last year, Fields's total compensation rose 19 percent to $22.1 million.

He has been executive chairman of the firm's Smart Mobility arm for just over three years, and will report to Bill Ford, executive chairman of the brand.

Ford replaced Mr Fields amid investor unease about the U.S. automaker's slumping stock price and its ability to counter threats from longtime rivals and Silicon Valley. Mr Hackett was elected to Ford's board effective Friday.

Shares of Ford are flat for the week and are down 10% YTD.

  • Zachary Reyes