Ford Motor Co. CEO Alan Mulally will receive a 30 percent pay cut during the next two years, the Detroit automaker announced in a filing with the U.S. Securities and Exchange Commission.
Besides Mulally’s pay cut, Ford announced the elimination of cash compensation for members of Ford’s board of directors in 2009 and the termination of merit increases for all salaried employees.
"Ford is acutely aware that current economic conditions have had a significant adverse impact on our shareholders, customers, dealers, employees and other stakeholders," Ford said in its preliminary proxy statement, according to TheStreet.com. "We do not view these actions as merely symbolic, but as a necessary step in the restructuring of our business in which all our stakeholders have been asked to participate."
Mulally’s salary, not including bonuses, dropped 78 percent to $2 million in 2008, the company said, as sales swooned at Ford and throughout the U.S. auto industry. His total compensation in 2008 dropped by 37 percent to $13.57 million.
Ford’s executive vice president, Lewis Booth, received $1.08 million in cash compensation in 2008, a 66 percent drop compared to the previous year. His total listed compensation fell 54 percent to $4.74 million.
Ford saw its worst year ever in 2008, as the Dearborn, Michigan-based company lost $14.6 billion.