Ford Says CEO Mark Fields To Get Annual Cash Base Salary Of $1.75 Mln

(RTTNews) - Automotive giant Ford Motor Co. (F) revealed in a regulatory filing on Wednesday that the new President and CEO Mark Fields will receive an annual cash base salary of $1.75 million. Fields officially took over the positions effective Tuesday after Alan Mulally retired from the company as announced in early May.

In a form 8-K filing with the U.S. Securities and Exchange Commission, the company said the compensation committee of the board of directors of the company approved on June 30 the compensation arrangements for Fields effective July 1.

Fields will now receive a base salary that is just over nine percent higher than the $1.6 million he received in 2013 as chief operating officer. Meanwhile, Mulally had received a base salary of $2 billion last year.

In addition to the base salary, Fields will also receive grant of 710,227 stock options with an exercise price of $17.21, and an increase in annual incentive compensation plan target to 200 percent of base salary.

Dearborn, Michigan-based Ford, the second largest U.S. automaker, also noted that Fields will use private aircraft while traveling to maximize his availability for company business and for safety.

Fields, most recently the chief operating officer since December 2012, has also been elected as a member of the company's board of directors.

Fields, age 53, was leading Ford's global business operations and most skill teams, including product development, manufacturing, purchasing, and marketing, sales and service.

Fields, who joined Ford in July 1989, has led the turnaround of Ford's businesses in the Americas, Asia and Europe through a focus on delivering product excellence, innovation and operating efficiency.

Before serving as COO, Fields served as executive vice president and president - The Americas since October 2005. Fields, who joined Ford in July 1989, has led the transformation of Ford's North American business, turning it from record losses several years ago to record profits in each of the last four years.

Earlier, Fields guided the product-led transformation of Ford's European operations and formerly held European luxury brands, as well as the relaunch of Ford's independent operations in Argentina as well as a major restructuring and product renaissance at Mazda.

Further, the compensation committee decided that the Mulally, who retired, will retain the performance-based stock awards he received in March 2014. It also decided to maintain his housing and travel allowances for a period of transition through August 31, 2014.

Mulally, age 68, retired after leading the automaker for nearly eight years, and capped a 45-year career. He led Ford's transformation and strengthened its position as one of the world's leading global automakers.

Under Mulally and the company's One Ford plan for profitable growth, Ford achieved 19 consecutive quarters of profitability and developed the strongest product lineup in its history. The firm also embarked upon its most ambitious global expansion in the past half century.

In Wednesday's regular trading session, F is currently trading at $17.26, up $0.06 or 0.32% on a volume of 4.45 million shares.