Jim Hackett, President and CEO of Ford Motor Company, speaks during their press preview at the 2018 North American International Auto Show in Detroit in January 2018.
(Photo: JEWEL SAMAD, AFP/Getty Images)
Ford CEO Jim Hackett earned total compensation of $16.7 million in 2017, his first calendar year at the company’s helm, the automaker said Thursday.
Hackett became CEO on May 19 and was head of Ford Smart Mobility before that. The company reported that his annualized pay of $17.4 million was 199 times more than the median compensation for all U.S.-based Ford employees.
Ford for the first time included salary and pay ratio data for its full workforce in its annual executive compensation report to the U.S. Securities and Exchange Commission. This additional disclosure is now required of companies by the 2010 Dodd-Frank Act.
The report showed Ford employees earned a median, full-time salary of $58,693 last year, or $87,783 in total compensation in the value of their health insurance, profit-sharing checks and any other compensation.
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Hackett received a total of $1.3 million in salary for the year, along with a $1 million bonus, $10.3 million in stock awards, $3.6 million in incentive plan compensation and $420,971 in other compensation.
Overall, Ford reported a $7.6 billion profit on $156.8 billion in revenue for 2017, resulting in $7,500 profit-sharing checks for UAW workers. The company’s revenue was up 3% from a year earlier, primarily from sales in North America.
Ford’s biggest individual earner last year was former chief executive Mark Fields, who received $21 million in total compensation, or $1.1 million less than in 2016. His compensation broke down as $1 million in salary; $14 million in stock awards; $2.1 million in incentive plan compensation; $6 million in pension-related compensation and about $400,000 in other compensation.
Ford also disclosed the total compensation for its four other highest-paid current executives:
CFO Bob Shanks earned $6.7 million for 2017, compared with $6.3 million for 2016.
Executive Chairman Bill Ford earned $15.6 million, up from $13.9 million for 2016.
President of Global Markets Jim Farley earned $13.4 million, up from $6.6 million for 2016.
And President of Global Operations Joe Hinrichs earned $12.1 million, nearly double his $6.7 million for 2016.
Ford is the second of the Detroit 3 this year to report compensation for its top executives. Fiat Chrysler Automobiles said in February that CEO Sergio Marchionne was paid $11.95 million for 2017. However, FCA, which isn’t headquartered in the U.S., was not required to report pay ratios.
General Motors has not yet reported executive salary or pay ratio figures.
Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @JCReindl.
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