Ford's new CEO gets $1 million bonus, $1.8 million base pay

Ford Motor Company CEO Jim Hackett speaks after being introduced as the automaker's new chief executive in Dearborn Michigan on Monday

Ford Motor Co.'s new CEO got a $1 million bonus when he took on his new role this week. He was replaced by Jim Hackett, the former CEO of office-furniture maker Steelcase Inc., who was leading Ford's foray into self-driving cars and ride sharing.

The salary, disclosed in a filing with the U.S. Securities and Exchange Commission today, represents a 151 percent increase for Hackett, whose salary was $716,000 as head of Ford Smart Mobility.

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Hackett is eligible for a bonus that could triple his base salary each year. He resigned from the Ford board immediately. Hackett also received an annual incentive plan target of up to $3.6 million, restricted stock grants worth $7 million and a $1 million accession bonus. Despite Ford's stock slide during Fields's almost three years as CEO, the automaker earned record profits.

Included in the separation package for Fields is "reasonable use of the company aircraft" until August 1, when he officially retires.

Last year, Fields's total compensation rose 19 percent to $22.1 million.

Some of the compensation for Mr Hackett will vest over three years. Hackett was elected to Ford's board effective Friday.

"The appointment of a new CEO at Ford was unexpected and comes in the absence of any major missteps by the company during recent years", notes Moody's analyst Bruce Clark.

"I am so excited to work with Bill Ford and the entire team to create an even more dynamic and vibrant Ford that improves people's lives around the world, and creates value for all of our stakeholders", Hackett said.

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