DETROIT -- Ford Motor Co. CEO Alan Mulally's compensation fell 29 percent in 2012 as the company failed to hit several performance targets.
Mulally's pay dropped to $20.99 million from $29.5 million in 2011. Mulally received $2 million in salary, a $3.95 million cash bonus and stock awards totaling $14.3 million last year, according to a proxy statement released by the company today.
Ford exceeded its targets in quality and cost performance but fell short of reaching its global targets for profit before taxes, operating cash flow and market share.
"We believe our 2012 performance clearly shows our management team performed exceedingly well in a difficult environment," the automaker said in the proxy statement.
The company exceeded its quality targets based on a measurement of things gone wrong and warranty spending.
But Ford's $8 billon profit before taxes fell short of its target of $8.7 billion target.
Bill Ford, executive chairman, earned a $2 million salary and $1.125 million cash bonus. His total compensation including stock options and other performance awards was $14.836 million.
Bill Ford and Mulally earned smaller bonuses because the company's global automotive operating cash flow of $4.63 billion was 32 percent of its target, according to the filing. The company also achieved just 3 percent of its target for market share.
Other executives listed in the proxy were:
- Mark Fields, who was promoted to chief operating officer last year and is the top candidate to succeed Mulally, received $1.385 million in salary and a $2.34 million cash bonus. His total compensation was $8.85 million.
- Bob Shanks, chief financial officer since April 2012, received $700,000 in salary and a $790,000 cash bonus. His total compensation, including stock options and other equity, was $5.1 million.
- Jim Farley, executive vice president of global marketing, sales, service and Lincoln, earned $707,500 in salary and a $655,000 cash bonus. His total compensation was nearly $4.6 million.
- Lewis Booth, who retired as CFO last April, earned $312,500 in salary and a $234,375 cash bonus. His total compensation was $3.1 million.
The payouts are determined by the compensation committee on Ford's board of directors.
The committee says the company achieved 75 percent of its performance targets last year and credited executives with "dealing decisively with the recession in Europe and continuing to implement" Ford's growth strategy.
In 2011, Mulally received $2 million in salary, a $5.46 million bonus and $22 million in other compensation.
In addition to the compensation reported in proxy statements, Ford gave Mulally $11.7 million in stock this month, $58.3 million last year and $56.6 million the year before as a reward for the automaker's turnaround.
Those awards have boosted Mulally's cumulative payout at Ford to almost $289 million, Bloomberg reported.
Ford disclosed in a filing last month that it will pay Mulally another bonus after his employment ends. The payment will be based on Ford's contributions to Mulally's company retirement and benefit equalization plans, according to the filing, which didn't provide further details.
Since joining Ford in 2006 from Boeing Co., Mulally has engineered a turnaround by globalizing the company's operations, cutting costs and overhauling its lineup with more fuel-efficient models. Ford has earned $35.2 billion the past four years after losing $30.1 billion from 2006 through 2008.
Ford says Mulally is expected to remain CEO until at least 2014.
Mulally is probably the world's highest-paid automotive CEO. Volkswagen AG, the largest European automaker, paid CEO Martin Winterkorn 14.5 million euros ($18.9 million), 17 percent less than in 2011. Toyota Motor Corp., the world's largest automaker, paid President Akio Toyoda 136 million yen ($1.43 million), according to data compiled by Bloomberg. Nissan Motor Co. paid CEO Carlos Ghosn $10.3 million.
While General Motors hasn't disclosed CEO Dan Akerson's 2012 compensation, the automaker said last month that his target remains $9 million a year. In 2011, he received $7.7 million.
Rising demand for F-Series pickups in Ford's home market last year paced a record $8.34 billion annual pretax profit for the company's operations in North America, which offset overseas losses. The North American results also led to profit sharing of about $8,300 on average to Ford's 45,300 hourly workers represented by the UAW, a record payout that was made Thursday.
GM is paying its hourly workers as much as $6,750 in profit sharing, while Chrysler Group hourly employees will receive about $2,250.
Ford began paying a quarterly dividend of 5 cents a share in March 2012 and said in January that it would double the payout.
Moody's Investors Service raised Ford to investment grade in May after Fitch Ratings lifted the company to the status in April. Standard & Poor's ranks Ford's debt BB+, the highest level of speculative grade, with a positive outlook.
Ford scheduled its annual shareholder meeting for May 9 in Wilmington, Del..
Shareholders will vote for the ninth consecutive year on a proposal to strip the Ford family of its 40 percent voting control of the automaker and move to one vote per share. The measure is opposed by Ford's board, which includes two Ford family members, Bill Ford and Edsel Ford II.
Ford shares, which traded below $2 four years ago, rose 20 percent last year, outpacing the Standard & Poor's 500 Index's 13 percent climb. The shares rose 0.1 percent to $13.45 at the close in New York Stock Exchange trading on Friday.
Bloomberg and David Phillips contributed to this report