The Blue Oval faced a number of challenges in 2022, most notably the ongoing supply chain shortages that hampered vehicle production and dented profits. Ongoing quality issues and the vast electrification pivot also impacted the automaker’s bottom line to the point where Ford CEO Jim Farley expressed his frustration at how the company performed last year. Unmet performance metrics resulted in a number of executives missing out on bonus compensation, and now, thanks to the company’s proxy statement filed today with the U.S. Securities and Exchange Commission, we know now that Farley himself did not receive any bonuses either.
According to the document, Ford CEO Jim Farley earned $1.7 million as his base salary, about $2.7 million in non-equity incentive plan compensation, and was awarded just over $15 million in stock awards. Paired with other compensation related to perks, the executive earned $20.9 million in total compensation for the year. That figures represents a nearly $2 million drop from 2021, where he earned $22.8 million for leading Ford.
2021 represented the first full year for Jim Farley as Ford CEO, and since then, he has embarked on transforming the company into a heavily electrified automaker intent on offering more connected services on its vehicles, which will be developed by new organizations within the company. This paradigm shift involves massive expenditures over the next several years, and the automaker expects its EV operations to run at a loss until its second generation vehicles arrive by 2027. Farley’s 2022 compensation reflects the numerous issues the company faced during the year, including quality hiccups that are still being dealt with. To that end, the company has hired new talent aimed at addressing longstanding issues that are expected to subside by 2024.
An increase in compensation for Farley will likely hinge on minimizing the losses for Ford Model e and profits brought in by Ford Blue. Currently, Ford expects a $3 billion loss for EV-related expenditures and expects to a $9 billion to $11 billion EBIT figure for its gasoline and hybrid vehicles sales.
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Comments
I’m sorry but that is absolutely disgusting. 1.7mil is enough
Shameful. This is why they’re gouging prices because we have to pay the brass with gold. Get the quality back than he can have his salary back.
Ford sold 4.2 million vehicles last year. His compensation was a like $5/vehicle. Or, on a $60k truck, it would be 0.008% of the price.
11 thousand dollars an hour…. And there’s no cost of living adjustment for the average worker anymore.
$21.9M for unmet performance metrics? I need a job like that.
You can probably do better too!
The Ford stockholders are the ones that lost big time with this clown! Farley did nothing to make this kind of money, if anything he did harm to the ford reputation, with his sad excuses for the many loses. So much from this once great automaker is now forever gone. Maybe a new qualified leader can save ford but it’s doubtful.
20 million to run Ford’s quality in to the ground? He said out loud in front of a group of engineers “it took years for the quality to get so bad, so it’ll take years to fix it”!!!! Look it up! Terrible quality, billions in loses and a bunch of F you’s to the customers waiting years for ordered vehicles. Now let’s watch together as the Lightning becomes the biggest failure in modern Ford history.
As a FMC employee… who NEEDS 20 million dollars in a year?? Every year? He could NEVER spend it! I’m skilled trades.
And haven’t had a significant raise in almost a decade!!! He could put most of that $$ back into the company, and make Ford a real heavyweight…
It’s not like Farley’s going to refund Ford for being overcompensated, but he should be embarrassed if nothing else.
He said super duty is a fortune 500 company by itself. Where’s my truck? Waiting from November of 2022 and still nothing. And he’s making 20 million and ford lost 13 billion in 2022 please .
Recall Motors has no shame in overcompensating Failure Farley.
With his record of recalls, terrible quality control,, failure to deliver, poor stock performance, and lame/blame excuses,
#FireFarley