Ford Cuts CEO Compensation 29% for 2012

Ford (NYSE: F  ) CEO Alan Mulally took a 29% pay cut for 2012, according to a SEC proxy statement filed today. The executive pulled in $21 million in overall compensation, but felt the squeeze due to Ford's failure to achieve three-quarters of its performance targets.

Source: SEC PRE 14A 

 

2011 ($)

2012 ($M)

Salary

$2

$2

Bonus

$5.5

$4

Stock Options and Addtl. Compensation

$22

$15

Total:

$29.5

$21

Source: Bloomberg 

Although market approval for 2012 is evident from the corporations' 16.4% stock price increase (the S&P 500 bumped up 11.7%), the blue oval missed on goals for profit, cash flow, and market share. 

Previously CEO of Boeing Commercial, Mulally joined Ford in 2006 to pull the automaker through the Great Recession and beyond. According to CNNMoney, Mulally has accumulated more than $300 million of Ford shares over his career. 

Ford has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. The stock has recently taken off, and it appears that investors have begun to notice what Ford is doing right. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? For in-depth analysis on whether Ford is a buy right now, and why, you're invited to check out The Motley Fool's premium research report on the company, authored by one of our top equity analysts. Simply click here now to claim your copy today.


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