Struggling Ford Motor Company awarded multimillion dollar bonuses to its executives last year despite the fact that it posted a record loss of 12.7 billion dollars, according to a document filed on April 05 with securities regulators.
The automaker said in March it would be awarding "modest" bonuses to all company employees in order to recognise their work in reducing costs and "courageously" restructuring the company as it shutters plants and lays off 40,000 workers. The bonuses amounted to an average of 500 dollars each for factory workers.
Chief Executive Alan Mulally, who took over from Bill Ford on September 1, received a total compensation package of 28.2 million dollars, which included a salary of 666,667 dollars for his four months of work at Ford.
Bill Ford, who currently serves as chairman, kept to his May 2005 decision to forgo new compensation until the company's automotive sector achieved sustainable profitability. While he received no cash salary, bonus or other awards, Ford was nonetheless received nearly 10.5 million dollars in previously assigned stock options and 'other compensation' such as the use of the corporate aircraft.
Among other awards, chief financial officer Don Leclair received total compensation of 4.4 million dollars, which included a salary of one million dollars, while Mark Fields, president of the Americas division, earned 5.5 million dollars, which included a salary of 1.3 million dollars.
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