Ford's New CEO Salary To Skyrocket

DEARBORN, MI — Jim Hackett’s new job as CEO of the Ford Motor Company is going to pay off — big-time. His salary will more than double to $1.8 million, but that’s just a drop in the bucket compared to his total compensation. After bonuses and with other incentive- and performance-based pay, Hackett could make as much as $13.4 million in 2017.

Of course, that’s still a lot less than what deposed CEO Mark Fields made last year. He was paid more than $22 million in total compensation in 2016, according to a Detroit News report. Hackett, 62, who had been chairman of Ford Smart Mobility, made $716,000 in salary last year.

Hackett’s new salary was disclosed Wednesday in a filing with the U.S. Securities and Exchange Commission, the Detroit Free Press reported. Hackett is the former CEO of Grand Rapids-based Steelcase, an office furniture manufacturer, and also interim athletic director at the University of Michigan, the newspaper reported.

(For more local news, click here to sign up for real-time news alerts and newsletters from Dearborn Patch, click here to find your local Michigan Patch. Also, follow us on Facebook, and if you have an iPhone, click here to get the free Patch iPhone app.)

Hackett will receive a performance-based, restricted stock grant valued at $5.25 million, the Detroit News reported. He will also get a time-restricted stock grant worth $1.75 million that will vest in thirds starting May 22, 2018 through May 22, 2020; and an annual incentive compensation plan target this year at 200 percent of his base salary — or up to $3.6 million, the newspaper reported.

The Ford Motor Company’s compensation committee also approved a stock grant valued at $5 million for Joe Hinrichs, who had been president of the Americas for Ford, the Free Press reported. He was also elevated as part of the leadership shakeup to executive vice president and president, Global Operations.

Personal use of company aircraft is another perk Hackett will enjoy as Ford’s CEO. For security reasons, the company does not permit either the CEO or Executive Chairman Bill Ford Jr. to fly commercially, the Detroit News reported. In 2016, Fields’ personal use of aircraft totaled $288,965, up from $240,726 the year before. Ford’s personal use of aircraft totaled $189,489 last year and it was $291,151 in 2015.

Photo by Joshua Lott / Stringer / Getty Images News / Getty Images