Ford Proxy Reports Executive Compensation
11 April 2000
Ford Proxy Reports Executive Compensation
DEARBORN, Mich., April 11 Ford Motor Company
filed its 2000 proxy statement with the Securities and Exchange Commission
today. The statement outlines 1999 compensation for the top five executives
of the company as well as the retired chief financial officer.
The highest paid of the six named executives was Ford President and Chief
Executive Officer Jacques A. Nasser, who earned $10,154,269 in salary, bonus
and other compensation. Nasser also received $2,893,975 in common stock under
the Long-Term Incentive Plan (LTIP).
Compensation for the executives listed in the proxy statement reflects in
large measure Ford's 1999 pre-tax operating earnings, the company's automotive
after-tax return on sales, and quality, specifically warranty performance and
customer satisfaction. Ford Motor Credit Company's return on equity also
factors into the bonus formula.
The Compensation and Option Committee of Ford's Board of Directors, which
is composed of non-employee directors, determines compensation for the
executives listed in the proxy.
Nasser received $1,500,000 in salary and a bonus of $6,722,000 for 1999.
For 1998, Nasser, then Executive Vice President and President, Ford Automotive
Operations, earned $1,050,000 in salary and his bonus was $5,000,000.
For 1999, Nasser also received Other Annual Compensation of $1,842,269,
which represents primarily cash dividend equivalents on Performance Stock
Rights, Contingent Stock Rights and Restricted Stock Units awarded under the
plan. In addition, Nasser received a total of $90,000 in matching
contributions under Ford's salaried employee savings and stock investment plan
(SSIP) and a separate company plan designed to offset IRS limitations relating
to the SSIP.
Nasser's LTIP award and the awards for the other executives listed in the
proxy statement represent the final awards for the 1996-1998 performance
period. LTIP awards for the 3-year performance period ending in 1999 will not
be determined until mid-year 2000 when Ford Motor Company's performance data
is available. Long-term incentive compensation is based on the achievement of
long-term corporate objectives set by the Compensation and Option Committee,
and the final value of LTIP awards is dependent on the performance of Ford
stock over time.
As of December 31, 1999, Nasser held options to purchase 2,006,285 shares
of common stock, including a 1999 grant of 10-year options to purchase 400,000
shares of Ford common stock at an exercise price of $57.9375.
The 1999 compensation of the following company officers also is summarized
in the proxy statement:
* W. Wayne Booker, Vice Chairman, earned $3,512,002 in 1999. That total
includes $763,333 in salary and $2,297,000 in bonus as well as other
compensation totaling $451,669, including $45,798 in SSIP matching
contributions and related credits. Booker also received an LTIP award of
$2,480,550, which was paid in common stock, and he was awarded options to
purchase 100,000 shares of common stock.
* John Devine, former Executive Vice President and Chief Financial
Officer, earned $3,041,140 in 1999. That total includes $600,000 in salary
and $1,720,000 in bonus as well as other compensation totaling $721,140,
including $35,996 in SSIP matching contributions and related credits. Devine
also received an LTIP award of $2,604,750, payable in common stock, and he was
awarded options to purchase 100,000 shares of common stock. Devine retired
from the company effective September 30, 1999.
* Richard Parry-Jones, Group Vice President for Product Development and
Quality, earned $1,802,745 in 1999. That total includes $502,500 in salary
and $1,063,000 in bonus as well as other compensation totaling $237,245,
including $30,146 in SSIP matching contributions and related credits. Parry-
Jones also received an LTIP award of $1,178,750, which was paid in common
stock, and he was awarded options to purchase 50,000 shares of common stock.
* Peter Pestillo, then Vice Chairman and Chief of Staff, earned
$3,331,557 in 1999. That total includes $763,333 in salary and $2,297,000 in
bonus as well as other compensation totaling $271,224, including $45,798 in
SSIP matching contributions and related credits. Pestillo also received an
LTIP award of $1,966,500, payable in common stock, and he was awarded options
to purchase 100,000 shares of common stock. Pestillo now serves as Chairman
and Chief Executive of Visteon.
* Robert Rewey, Group Vice President for Marketing, Sales and Service,
earned $2,503,236 in 1999. That total includes $702,500 in salary and
$1,531,000 in bonus as well as other compensation totaling $269,736, including
$42,148 in SSIP matching contributions and related credits. Rewey also
received an LTIP award of $1,966,500, payable in common stock, and he was
awarded options to purchase 60,000 shares of common stock.
A proxy statement and proxy card are being mailed to Ford Motor Company
common and Class B shareholders today. The 2000 Annual Meeting of
Shareholders will be held at 10 a.m. (ET), Thursday, May 11, at Zoo Atlanta,
800 Cherokee Avenue S.E., Atlanta, Georgia.