Ford Motor Co. will pay outgoing Chief Executive Mark Fields a sizable portion of a promised bonus for 2017, all of the promised stock awards for the year and temporary use of company aircraft as part of an exit package outlined Wednesday.
A Ford spokesman said the value of that package is tied to current-year company performance and stock-price performance, and won't be disclosed until 2018, when the current year's proxy statement is filed, a Ford spokesman said. Mr. Fields, who will retire Aug. 1, earned $22 million in 2016 and $18.5 million in 2015. His stock awards in those years equaled $14.3 million and $12.1 million, respectively.
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Ford, in a filing, said the company's new chief, Jim Hackett, will be paid a $1.8 million salary and $8 million in stock awards and bonus. The salary for Mr. Hackett, named to the company's top job Monday, is roughly in line with what the company paid Mr. Fields in 2016, his second full-year as CEO.
Mr. Hackett can also get an additional $3.6 million, or twice his base salary, as an annual incentive bonus. Mr. Fields was paid a nonequity incentive bonus in excess of $2.75 million over each of the past three years.
Mr. Hackett replaces Mr. Fields, a 28-year Ford veteran, amid a slumping stock price and concerns about company strategy. Joe Hinrichs, a longtime Ford executive, will be Mr. Hackett's operational chief and has been granted a $5 million stock incentive as part of that move.
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(END) Dow Jones Newswires
May 24, 2017 15:12 ET (19:12 GMT)