Ford Motor Company has released its annual proxy statement, which reveals its executive compensation for the year. And in 2020, Ford CEO Jim Farley brought home a total of $11.8 million, which was a 41 percent increase over his 2019 compensation, prior to taking over as the automaker’s CEO. That total consists of a $1.4 million base salary, $5.1 million in stock awards, and around $4.2 million in other awards.
In a year ravaged by the COVID-19 pandemic, Ford’s executive team hit just 23 percent of its business performance targets versus 54 percent in 2019. None of the automaker’s cash flow, revenue, or pretax earnings targets were met, but quality targets were exceeded. Overall, Ford recorded its first net loss – $1.3 billion – since the Great Recession as revenue plunged 9 percent.
Despite this, Ford’s compensation committee opted to alter its executive bonus plan to reward execs for their response to the pandemic. “Historically, the Compensation Committee has refrained from exercising its discretion to modify the company’s incentive programs, but, with management recommendations and advice from the committee’s independent consultant, the committee determined that the unprecedented circumstances of the COVID-19 pandemic warranted such an action,” Ford wrote in its proxy.
Jim Hackett, who preceded CEO Jim Farley prior to his taking over the position later in the year, received the biggest pandemic bonus of $1.26 million, while Farley took home $685,330. Hackett’s 2020 compensation came in at $16.7 million, a 3.6 percent decrease from 2019.
Executive Chairman Bill Ford‘s compensation totaled $16 million, down 4.2 percent, while newly appointed CFO John Lawler received a salary of $715,000. His successor, Tim Stone, made a total of $6.2 million, while chief product platform and operations officer Hau Thai-Tang took home a total of $11.8 million in total compensation. Ford’s president of the Americas and International Markets Group, Kumar Galhotra, earned $8.5 million.