Last week the Ford Motor Company released finance documents for the 2018 fiscal year. The documents included the compensation for various employees, including CEO Jim Hackett. In 2018, Hackett received total compensation of $17.8 million, which was an increase from $16.7 million in 2017.
Ford reports that Hackett’s overall compensation was 276 times more than the median compensation for all other Ford employees based in the United States. CEO Jim Hackett, age 63, was Ford’s largest individual earner in 2018. This news may be a hard pill to swallow after layoffs were confirmed earlier this week.
According to the Detroit Free Press, Ford included salary and pay ratio data for its full workforce in its annual executive compensation report to the U.S. Securities and Exchange Commission. Disclosures like this have been required of companies since the 2010 Dodd-Frank Act.
The report disclosed that Ford employees earned a median, full-time salary of $64,316 in 2018, which was up from $58,693 in 2017. Meanwhile, CEO Jim Hackett received a $1.3 million in salary in 2017, along with a $1-million bonus, $10.3 million in stock awards, $3.6 million in incentive plan compensation, and $420,971 in other compensation.
For the 2018 fiscal year, Hackett’s increased pay broken down includes $1.8 million in salary, $12.7 million in stock awards, $2.6 million in incentive plan compensation, and approximately $617,710 in other compensation.
If you’re curious about other top earners, we have listed the four other highest-paid executives at the Ford Motor Company below.
- CFO Bob Shanks was compensated $8.4 million in 2018, compared to $6.7 million in 2017 and $6.3 million in 2016.
- Executive Chairman Bill Ford was compensated $13.8 million, a decrease from $15.6 million in 2017 and $13.9 million in 2016.
- President of Global Markets Jim Farley was compensated $5.9 million, down from $13.4 million in 2017 and $6.6 million in 2016.
- President of Global Operations Joe Hinrichs was compensated $5.8 million, down from $12.1 million in 2017 and $6.7 million in 2016.
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All this tells you is the Board of Directors –which are composed of people just like Hackett– is blind and clueless*. They are supposed to represent the *shareholders* of the company, not be buddy-buddy with the executives and hand them raises when the company’s fortunes are either stalled or sagging.
*Which also explains why they green-lit Ford’s unfortunate foray into autonomy and “mobility”. Chase every trend, why don’t you…
I do not see him bringing any long term value.
Products already in the pipeline like the Bronco, mini Bronco, 7.3 gas motor for HD trucks and Ranger/Courier are what make the difference.
He had nothing to do with these but will get the credit.
back to bean counter FORD. What has this guy done during his time with the company other than putting all his eggs in one basket and ignoring an entire segment? How many 50K and plus Trucks can you sell? How about urbanites who need city and short commute trips and grocery bags to bury in a trunk. even selling a few is better than losing customers. Asinine strategy. Losing experienced workers with this pendulum down-stroke will also eventually impact rebuilding a rebuild into profitability, This guy is plain bad for the company. I suppose all his millions will trickle down and make Ford Great Again.
Maybe Ford should save their money on this guy and hire back Alan Mulally!
I agree with one qualifier.
Somehow Ford got totally lost thinking the aluminum F-150 would make a ranger replacement unnecessary.
Huge mistake so was it Alan Mulally or Mark Fields sleeping at the wheel?
I don’t know that the aluminum F-150 was specifically intended as a Ranger semi-replacement, but Ranger sales were dropping steadily and “they” probably didn’t see a future for it. But, lesson learned and the Ranger is back, followed shortly by a new Courier.
There is always carryover in the product line but dropping passenger cars is this guy’s provenance or so it seems to me. In any case, there is so much un-needed tech added to every vehicle which combined with the bigger is better strategy so as to make every vehicle more profitable is pricing the mainstream buyer right out of the market. I know that most buyers are already having difficulty buying new vehicles. I bet that repossessions are getting more and more common.
We agree more than we disagree.
The Ranger was a 1983 design that went all the way to 2012 so I think that says something about sales.
As an FYI, I had a 1984 Bronco 2 and for that time it was not bad, if they made it again, I’d probably buy it. It was the V6 but had limit slip rear and locking front axles.
maybe they should spend more time working on supply issues and less on taking money-nothing like an award winning maverick that is not available unless you pay 20-25% markup-wonder how they would feel if they had to wait a year for their bonus.