Ford chairman and chief executive Bill Ford Jr. received $US21.6 million in stock options in 2002 in lieu of a salary, Reuters reported on Monday.
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In its annual proxy, Ford disclosed that it gave no bonuses or merit increases to its five most highly paid executives in 2002, a year that saw the company lose $980 million and its stock price fall 42%, Reuters added.
The options on some 4.4 million shares for Bill Ford Jr. were given in lieu of a salary and long-term incentives. The options currently have no value, but do not expire until 2012. Bill Ford Jr., whose great grandfather founded the company 100 years ago, was also paid an additional $219,953 in other compensation, including use of company aircraft, Reuters said.
According to the news agency, Ford also said it was planning on awarding an additional 4 million shares to Bill Ford Jr. this year. Those shares would have a strike price of $9.82, just below Ford’s current share price.
Reuters noted that Bill Ford Jr. said he would forgo a salary in 2001 after ousting former CEO Jacques Nasser, who led the company to a $5.45 billion loss in 2001. Ford reported a surprisingly strong operating profit in the first quarter of this year, thanks to deeper-than-expected cost cutting and stable prices.
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By GlobalDataFord chief operating officer Nick Scheele received $10.2 million in 2002, including $8 million in options. Vice chairman Carl Reichardt was paid $7.3 million, of which $6.8 million was in the form of restricted stock, Reuters said.
