Ford Motors CEO has delivered top notch performance.
Ford Motor has decided to pay homage to its Chief Executive Officer, Mr. Mark Fields with a hefty paycheck for all his efforts. The company thinks that they need to compensate him since they delivered skyrocketing profits this annum, thus the compensation for the executive has bolstered in contrast to the past year by 17%.
Mr. Fields got an amount of $17.3 million, after the company made amendments to the pension value. It has reported great profits since the sales of sport utility vehicles have increased during the annum.
As per the SEC filing, the executive was paid almost $1.75 million as salary, $13.36 million as a stock option in long term along with other incentives based on performance equity. Along with that, he banged $3.46 million as bonus will sums the total amount to $18.6 million that encompasses the pensions. So when the pension values get adjusted, they are likely to get volatile by adding the other expenditures like the traveling using the corporate aircraft with a 16.89% on a year over year basis from $14.8 million to $17.1 million. The company on a whole has spent $240,729 on his personal use for the corporate aircraft.
The values of pension vary on a year to year basis in terms of difference in the mortality tables as well as discount rates that are issued by government. The automotive giant at this point of time has no control on it at all. It is not the compensation paid directly to the executives. However, it is an accounting amount that is cur from the overall remuneration package.
An executive belonging to Ford, Mr. Fields took charge as the Chief Executive Officer and the company’s president in FY14. He is appreciated for offering operational excellence along with improvements to the car line ups. He is appreciated for looking and taking care of the roll out of the enhanced aluminum body of the F-150 pick- the cash making commodity for Fords last year. In the North American region, the company has embraced significant success due to its mind blowing performance.
Back in time, Mr. Fields came up with an enhanced contract that spanned for four years that asked the trade unions to join forces with the United Auto Workers. This was his way to deal with the staggering fuel prices. He also came with more SUVs to serve the purpose that comprised of more top and bottom line figures.
It needs to be noted here that certain investors and analysts are skeptical of the fact that the good days of the company might end soon. The auto industry in the regions is embracing a lot of pressure. Mr. Fields is also aware of the concern, when an analyst conference took place in January he mentioned that the operating profit margins of Ford in North America might go down this year since the increasing costs cause a dent on the profits.
North America is said to be the largest market for Fords thus any drop in that can cause subsequent damage to the company.
No comments:
Post a Comment