Ford releases compensation figures for top executives

Ford Motor Company on April 6 filed its 2007 proxy statement with the Securities and Exchange Commission. The statement outlines compensation for select executives, including William Clay Ford Jr., executive chairman and former chief executive officer, and Alan Mulally, president and chief executive officer.

The proxy includes a table summary of the total annual compensation provided, granted to, or received by, each of the named executives for 2006. It is important to note that the amounts shown in the Summary Compensation Table associated with stock and option awards reflect the company's accounting expense recognized in its 2006 financial statements for these awards and do not correspond to the actual value that may be recognized by the named executive. Because some of the equity awards have vesting conditions, their costs generally are recognized over multiple years, and the dollar amounts shown generally reflect the company's accounting expense of the awards made during 2006 and prior years.

Compensation details found in the 2007 proxy statement include:

• William Clay Ford Jr., executive chairman and former chief executive officer, served as CEO from January 1, 2006 until September 1, 2006, and received no cash salary, bonus or other awards for 2006 pursuant to his May 2005 compensation arrangement to forego any new compensation until the company’s Automotive sector achieves sustainable profitability. His 2006 compensation totaled $10,497,292. The expense related to his previous options and other stock-based awards totaled $9,950,585, and an increase of $152,859 in the present value of accrued pension benefits, are included in his 2006 compensation. He received other compensation totaling $393,848, which included $185,232 in value for required use of the corporate aircraft and $85,708 for security.

• Alan Mulally, president and chief executive officer, served as president and CEO from September 1, 2006 for the remainder of the year, and earned $666,667 in salary. His 2006 compensation totaled $28,183,476. Mulally received a bonus of $18.5 million which consisted of a $7.5 million hiring bonus and $11 million as an offset for forfeited performance and stock option awards at his former employer. The expense for his options and other stock-based awards totaled $8,682,376, and includes cost recognized in 2006 for a $5 million stock option grant that he received in March 2007 as part of his 2007 option grant. Mulally received other compensation totaling $334,433, which included $172,974 for required use of the corporate aircraft, and $55,469 for relocation costs and temporary housing.

• Don Leclair, executive vice president and chief financial officer, earned $1,000,933 in salary. His 2006 compensation totaled $4,401,100. The expense for his options and other stock-based awards totaled $795,132. In addition, he received $1,684,000 in non-equity, performance-based, incentive plan compensation which included payment of $364,000 under the Annual Incentive Compensation Plan and a cash settlement of $1,320,000 under the 2006-2008 Senior Executive Retention Incentive Arrangement for certain executive officers. In addition, an increase of $900,116 in the present value of accrued pension benefits is included in the value of his 2006 compensation. Other compensation totaled $20,919.

• Mark Fields, executive vice president and president, The Americas, earned $1,250,933 in salary. His 2006 compensation totaled $5,574,850. The expense for his options and other stock-based awards totaled $567,308. In addition, he received $2,662,500 in non-equity, performance-based, incentive plan compensation which included payment of $375,000 under the Annual Incentive Compensation Plan and a cash settlement of $2,287,500 under the 2006-2008 Senior Executive Retention Incentive Arrangement for certain executive officers. An increase of $437,318 in the present value of accrued pension benefits also is included in the value of his 2006 compensation. Other compensation totaled $656,791, which includes $517,560 for personal use of the company aircraft. Pursuant to his request, he no longer uses the company aircraft for personal travel.

• Mark Schulz, executive vice president and president, International Operations, earned $1,000,933 in salary. His 2006 compensation totaled $2,680,384. The expense for his options and other stock-based awards totaled $541,364. In addition, he received $259,800 in non-equity, performance-based, incentive plan compensation under the Annual Incentive Compensation Plan. An increase of $835,395 in the present value of accrued pension benefits also is included in the value of his 2006 compensation. Other compensation totaled $42,892.

• Lewis Booth, executive vice president, Ford of Europe and Premier Automotive Group earned $850,933 in salary. His 2006 compensation totaled $4,274,509. The expense for his options and other stock-based awards totaled $525,979. In addition, he received $1,891,250 in non-equity, performance-based, incentive plan compensation which included payment of $191,250 under the Annual Incentive Compensation Plan and a cash settlement of $1,700,000 under the 2006-2008 Senior Executive Retention Incentive Arrangement for certain executive officers. An increase of $610,023 in the present value of accrued pension benefits also is included in the value of his 2006 compensation. Other compensation totaled $396,324, which includes costs associated with his international service assignment, including: home leave travel; temporary housing; lodging and meals during relocation; and a housing allowance.

• Jim Padilla, former president and chief operating officer, who retired from the company on July 1, 2006, earned $750,133 in salary. His 2006 compensation totaled $8,673,622. The expense for his options and other stock-based awards totaled $6,801,256. In addition, he received $262,500 in non-equity, performance-based, incentive plan compensation under the Annual Incentive Compensation Plan. Other compensation totaled $467,945, which includes $82,265 for personal use of company aircraft and $27,096 for use of the company's car and driver service.

The company’s Annual Meeting of Shareholders will be held on Thursday, May 10, at 8:30 a.m. ET at the Hotel du Pont, 11th and Market Streets, Wilmington, Del.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With more than 280,000 employees and more than 100 plants worldwide, the company’s core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin and Mazda. The company provides financial services through Ford Motor Credit Company.