In what will likely amount to a massive payout, Ford Motor Company filed a letter with the Securities and Exchange Commission stating it will pay Ford CEO Alan Mulally a lump-sum retirement bonus that, before taxes, will be equal to five times the company's contribution, the Detroit Free Press reported Wednesday.
The letter did not state a specific amount to be paid, but it says that under Mulally's 2006 hiring agreement he "will be credited four additional years of service for every year of actual service," the report stated.
Mulally's retirement benefits were fully vested after one year of employment, the letter, which was signed by Felicia Fields, Ford group vice president for human resources, the article stated.
Mulally indicated he will not retire until 2015 at the earliest and the letter to the SEC was filed as a matter of form, the Free Press reported.
"It's nothing more than a clarification of what the compensation committee thought was overly general language in the original employment" agreement, said Ford spokesman Jay Cooney, according to the report.
According to the Free Press, Ford will disclose 2012 compensation for its top five executives next month/
In 2011 Mulally was paid $29.5 million in salary, bonuses and other incentives, an 11 percent increase from 2010. His pay is higher than 2011 compensation for Chrysler CEO Serigo Marchionne, who took in $22.2 million and General Motors CEO Dan Akerson, who took in $1.7 million in salary and $7.3 million in stocked-based incentives, an amount that cannot increase until the U.S. Treasury sells its last shares of GM stock, the article said.
The 67-year-old Malually came to Ford after retiring from Boeing and is credited with leading Ford's turnaround because of his "One Ford" plan, which aimed to realign the automaker's once-disconnected business units to better achieve economies of scale, a report from Economic Times stated.
After losing $30.1 billion from 2006 to 2008, Ford has earned $35.2 billion from 2009 to 2012, with a 2012 income of $5.67 billion, according to the Free Press.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?