Greg Gardner

Detroit Free Press

Ford paid CEO Mark Fields $17.3 million in total compensation for 2015, his first full year at the helm, up 17% from his 2014 package of $14.8 million, according to a filing with the Securities and Exchange Commission.

That is based on what Ford calls his "awarded" compensation. Those amounts do not include an $858,157 increase in the accounting value of his pension, or $370,451 in other compensation such as use of corporate-owned aircraft, season tickets to athletic events, use of a car and driver service and other perks.

Executive Chairman Bill Ford's compensation totaled $10.1 million, up from $9.9 million in 2014. That didn't include $1.4 million in other compensation or $1.38 million in added value of his pension.

Executive pay is a sensitive issue, especially in an election year. But the industry is at or near a peak of the current economic cycle. New vehicle sales hit a record 17.5 million last year and are expected to rise again this year.

Ford earned $7.4 billion in net income last year, more than doubling 2014's $3.2 billion. The automaker posted pretax profits in every region but South America and made money in Europe for the first time since 2011.

But the price of its shares fell 9% over the course of 2015.

The Securities and Exchange Commission requires all publicly traded companies to disclose compensation of their top five executives.

Most corporate boards have tried to base executive pay more on incentives such as stock options and grants than on salary and bonuses. The intent is to reward management more if the company delivers higher returns to shareholders. Some of those grants, however, are vested in annual increments, so the value varies depending on the rise or fall of the stock price.

The automaker sets performance targets each year in the areas of quality, cash flow, automotive revenue and profit margin. These are closely tied to compensation of most management employees. For 2015, Ford achieved 99% of those targets.

Fields, 55, was paid a salary of $1.75 million and a bonus of $3,465,000. The largest component came from stock awards worth $12.1 million.

Joe Hinrichs, president of the Americas, received $6.4 million, including a salary of $1.02 million, bonus of $304,425 and stock awards of $3.74 million.

Compensation for Bob Shanks, chief financial officer, totaled $5.6 million, up from $5 million in 2014. His 2015 compensation included a salary of $831,250 and stock awards of $3.5 million.

Jim Farley, president of Ford Europe, Middle East and Africa made $5.8 million, up from $4.6 million. That included a salary of $893,750 and bonus of $178,200.

CEO Sergio Marchionne gets $11M in pay from FCA alone

Last month, Fiat Chrysler Automobiles reported that CEO Sergio Marchionne's 2015 compensation was worth $73.6 million. That included 3.95 million shares of stock valued at about $62.7 million when they vested, but may be worth more or less over time. He has not sold those shares. Marchionne received a salary of $4 million and a bonus of $6.85 million.

General Motors will report 2015 compensation for CEO Mary Barra and its other top five executives next month.

Ford will hold its annual shareholders meeting May 12 at the Hotel du Pont in Wilimington, Del., starting at 8:30 a.m.

There will be two proposals from shareholders, including a perennially offered idea to end the company's dual-class voting stock in which Ford family members have their own class of shares with greater voting power. The company's board of directors again opposes that proposal, which has been defeated 11 times.

The second proposal would enable investors to call a special shareholder meeting to bring important matters to the board's attention. It would require a change in the corporation's bylaws. The board also is opposed to this proposal.

Contact Greg Gardner: 313-222-8762 or ggardner@freepress.com. Follow him on Twitter @GregGardner12