In 2006 Ford Lost $12,700,000,000 (That $Billions Folks But New Ford CEO Mulally Got Paid $28,180,000 Including an $18 Million "Performance" Bonus - Huh?

But First Snide's Remarks: I aaa aaa, I thought capitalism was based on Risk and then Reward...I guess Ford has changed that formula...I am so amazed that I can't think of any other comments to make...can you?? Msnide@theautochannel.com

DETROIT, April 5, 2007; Poornima Gupta writing for Reuters reported that Ford Motor Co., which posted a loss of $12.7 billion last year, said on Thursday that Chief Executive Alan Mulally received $28.18 million in compensation in 2006, including an $18.5 million bonus.

Mulally, a former Boeing Co. executive, replaced Ford family scion Bill Ford Jr. as chief executive last September.

Chairman Bill Ford, who was CEO for the first eight months of 2006, did not receive any cash salary, bonus, or stock awards for 2006 as he had made a commitment in 2005 to forgo any new remuneration until the company's auto unit showed sustained profits.

However, the company took an expense of $9.95 million last year related to Bill Ford's previous stock and option awards.

Bill Ford recruited Mulally as the company was drawing up a restructuring plan that included trimming jobs and accelerating closing of factories.

Ford, which doesn't expect its key North American auto operations to return to profitability until 2009, has been steadily losing U.S. market share to more nimble rivals led by Toyota Motor Corp.

The No. 2 U.S. automaker disclosed in an annual proxy on Thursday that Mulally was awarded a $7.5 million hiring bonus and $11 million to offset the compensation he gave up for ending his tenure as head of Boeing's commercial plane division.

He also received 4 million stock options last year, but at least 3 million of those are currently out of the money, meaning Mulally will have to wait until the company's fortunes turn around before he can cash in.

MULALLY EXIT PACKAGE WORTH $27.54 MILLION

Also, according to Mulally's employment agreement, the CEO would receive a total package worth $27.54 million if he is terminated for reason other than cause during his first five years or if he is terminated because the automaker is acquired, enters into a merger or files for bankruptcy, Ford said in the filing.

The expense for Mulally's options and other stock-based awards totaled $8,6 million, and includes cost recognized in 2006 for a $5 million stock option grant that he received in March 2007 as part of his 2007 option grant, Ford said.

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

Ford Americas President Mark Fields was granted a total compensation of $5.57 million last year, including a salary of $1.25 million, stock.

Fields' other compensation included $517,560 for personal use of company aircraft, a benefit he gave up after it came in for criticism.

Ford's Chief Financial Officer Don Leclair was granted $4.4 million in total compensation.

Separately, shareholders are scheduled to vote on eight shareholder proposals at the company's annual meeting on May 10 in Delaware.

One proposal, opposed by management, calls for the company to have a single class of shares.

Ford, which has been publicly traded since 1956, has two classes, with Class B shares giving the Ford family 40 percent of voting power.