Ford Motor CEO Mulally Received $39.1 Million in Compensation, Even as Struggling Automaker Posted Losses

Alan Mulally, who succeeded Bill Ford last year as chief executive of Ford Motor Co. (F), received compensation valued at $39.1 million in his four months on the job in 2006, including an $18.5 million bonus related to his signing and awards he gave up when he left his previous employer Boeing Co. (BA), according to a regulatory filing Thursday.

Mulally took over as CEO in September and also is the Dearborn, Mich.-based company's president.

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The total of $39.1 million is based on Associated Press calculations.

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The nation's second biggest automaker lost $12.7 billion in 2006, the largest in its 103-year history, largely due to a massive restructuring plan undertaken amid a withering assault from Asian automakers who have taken an increasing share of the U.S. auto market. Ford expects more losses for this year and in 2008, but expects to return to profitability in 2009.

Mulally was paid a salary of $666,667 in 2006, a prorated amount based on the $2 million annual salary that the company agreed to pay him, according to Ford's proxy statement filed with the Securities and Exchange Commission.

Mulally also received a bonus that consisted of a $7.5 million hiring bonus and $11 million to offset performance and stock option awards that he forfeited when he left the aircraft maker Boeing.

He got other compensation totaling $334,433, which included $172,974 for required use of corporate aircraft and $55,469 for relocation costs and temporary housing.

Ford also granted Mulally stock and stock options that the company valued at $19.6 million.

The Associated Press calculates total pay including executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock and options awards granted during the year. The calculations don't include changes in the present value of pension benefits or the company's cost of stock and options granted before 2006, and the figures can differ from the company's total.

Bill Ford, the company's executive chairman and great-grandson of company founder Henry Ford, served as CEO from Jan. 1, 2006 until Mulally joined the company on Sept. 1. Bill Ford received no cash salary or bonus in 2006 pursuant to his May 2005 compensation arrangement to forego such compensation until the company's automotive sector achieves sustainable profitability.

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The company granted him stock and options valued at $4.9 million and provided him with $393,848 in other compensation, including $185,232 for required use of corporate aircraft and $85,708 for security, giving him $5.3 million in total compensation.

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