Ford Motor Company Proxy Reports 2006 Executive Compensation

Ford Motor Company Proxy Reports 2006 Executive Compensation

Ford Motor Company [NYSE: F] today filed its 2007 proxy statement with the Securities and Exchange Commission. The statement outlines compensation for select executives, including William Clay Ford, Jr., executive chairman and former chief executive officer, and Alan Mulally, president and chief executive officer.

The proxy includes a table summary of the total annual compensation provided, granted to, or received by, each of the named executives for 2006. It is important to note that the amounts shown in the Summary Compensation Table associated with stock and option awards reflect the company’s accounting expense recognized in our 2006 financial statements for these awards and do not correspond to the actual value that may be recognized by the named executive. Because some of the equity awards have vesting conditions, their costs generally are recognized over multiple years, and the dollar amounts shown generally reflect the company’s accounting expense of the awards made during 2006 and prior years.

Compensation details found in the 2007 proxy statement include: William Clay Ford, Jr., executive chairman and former chief executive officer, served as CEO from Jan. 1, 2006 until Sept. 1, 2006, and received no cash salary, bonus or other awards for 2006 pursuant to his May 2005 compensation arrangement to forego any new compensation until the company’s Automotive sector achieves sustainable profitability. His 2006 compensation totaled $10,497,292. The expense related to his previous options and other stock-based awards totaled $9,950,585, and an increase of $152,859 in the present value of accrued pension benefits, are included in Mr. Ford’s 2006 compensation. Mr. Ford received other compensation totaling $393,848, which included $185,232 in value for required use of the corporate aircraft and $85,708 for security.

Alan Mulally, president and chief executive officer, served as president and CEO from Sept. 1, 2006 for the remainder of the year, and earned $666,667 in salary. His 2006 compensation totaled $28,183,476. Mr. Mulally received a bonus of $18,500,000 which consisted of a $7,500,000 hiring bonus and $11,000,000 as an offset for forfeited performance and stock option awards at his former employer. The expense for his options and other stock-based awards totaled $8,682,376, and includes cost recognized in 2006 for a $5 million stock option grant that he received in March 2007 as part of his 2007 option grant. Mr. Mulally received other compensation totaling $334,433, which included $172,974 for required use of the corporate aircraft, and $55,469 for relocation costs and temporary housing.

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