Ford Posts Automotive Loss but Overall Profit for 2009

Ford’s CEO, Alan Mulally, knew what he was doing at the end of 2008, when he said that he was willing to work for $1/year - that was smart marketing. And Mulally continues to use such moves: The CEO took a voluntary 30 percent cash salary cut for 2009, receiving $1.4 million, down from the $2 million earned in 2008. In addition to that, the executive did not receive a bonus last year. However, Mulally’s overall compensation increased by 5 percent last year, reaching $17.9 million.

The increase was mainly generated by a rise in stock awards and was given the green light as Ford returned to profit in 2009. The company’s automotive operations generated an operating loss of $1.4 billion, but this was compensated by other sectors of Ford’s business - the overall financial results of the company show a $2.7 million profit. 2009 was the first profitable year for the U.S. automaker after a long period of serious losses.

Other top Ford executives saw their salaries decrease last year. Ford’s Chief Financial Officer, Lewis Booth earned a salary of $1.2 million, with his total package reaching $ 3.8 million, down from $5.4 million in 2008. Mark Field, President of Ford Americas received $1.3 million, the same salary as a year before, but his total compensation only reached $4 million, $600,000 less than in 2008.

The most extreme Ford salary “diet” is kept by the company’s executive chairman, William Clay Ford Junior, who has not received his compensation since 2008 and will continue on this pathway until the company’s automotive arm reaches full-year profitability. Mr. Ford’s unpaid compensation, including the $16.8 million “earned” in 2009, is actually a no-interest loan to the company - the entire amount of money will be paid once the automaker becomes profitable.