The Ford Motors has increased total compensation of its Chief Executive Officer Alan Mullay by 11 per cent to $29.5 million.
The announcement came in the wake of the automaker falling short of meeting its target sales, quality, and costs.
Allan Mulally, 66, received $2 million in salary and $5 million in cash and bonuses. The amount also included stock options and equity awards made him to see the increase of whopping $29.5 million. In 2010, Mulally earned $26.5 million.
In an official statement, Ford said the company has sidelined all the goals for annual profit cash flow in automotive operation for the U.S. Securities and Exchange Commission.
Jay Cooney, spokesperson for Ford, said that the automaker is happy with the decision and he has been awarded the salary honoring his contribution to the company.
“Out stock has appreciated under his leadership. So, clearly he has delivered his shareholder value” says Cooney.
However in the meantime, Ford did not improve its market share in the global market, as expected by many experts, and fell short of cost performance target in every region except in Europe, as the industry experts analyze.
Jimmey Settles, a UAW official with Ford, says that the decision is completely taken by the management.
“It’s as if there’s an echo in there. To be the CEO’s of the nation’s largest companies, like Alan Mulally, continue to receive pay raises at a rate that rate is outrageous,” said Settles.
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