Due the tenure of the CEO and President of Ford Motors, the company has reported record breaking profits hence receiving a huge pay check for his performance.
Due to his incredible performance this year, Ford Motor Company’s CEO Mark Fields has been rewarded with a huge paycheck. From the previous year, Mr. Field’s compensation for the year has been bumped up by 17% as he delivered record profits this year.
As the company’s top executive, Mark Fields had received approximately $17.3 million after adjusting his pension value for his first full year as an executive. During the year, the automobile giant managed to report best profits mainly due to the increasing sales of its sport utility vehicles (SUVs). Inclusive of pension value, as per a recent SEC filing, the CEO was rewarded with a total of $18.6 million which included $1.75 million in salary, over $13.36 in stock options along with performance based equity incentive; along with a bonus of $3.46 million while the rest was pension value.
Mark Fields was appointed at the CEO and President of the auto-maker back in July 2014; ever since his admission into the organization, it has seen increased profits and improvement in Ford’s operations. Last year’s major cash cow was the company’s aluminum-bodied F-150 pickup which was redesigned by him and was praised for that improvement as well.
In addition to that, due to the declining fuel prices in the market, Mr. Fields also rolled out more SUVs into the market which ultimately improved the automobile organization’s top and bottom line numbers. With all this positivity that has been witnessed by analysts and investors so far many now believe that this might not last for long. As the specific auto industry might hit a peak and hence reach to a saturation point due to which the margins will feel the pressure.
On the contrary, the CEO also agrees with this notion, and during a conference held in January he stated that the company’s North American operating profits margin are likely to witness a decline this year; which is the country’s largest market. This decline in the market is likely to lead to an overall performance decline in the earnings.
Furthermore, according to a proxy report, the executive reported that the top team is to make sure they achieve 99% of the goals that are to be set by the board. In pre-tax earnings, the company posted $10.8 billion which is the record breaking profit of fiscal year 2015. Additionally, during Mark’s tenure the auto–maker managed to sell as many as 780,354 units of its F Series pickup trucks. All these units were sold in the United States which for the 34th consecutive time made Ford Motors the best-selling vehicle.