Ford chairman received 40% pay cut last year Decrease meant Trotman made $4.5 million

April 10, 1996|By BLOOMBERG BUSINESS NEWS

DETROIT -- Ford Motor Co. cut Chairman and Chief Executive Alex Trotman's pay by 40 percent last year as the automaker's profit fell 22 percent, hurt by high costs for the new Taurus car and F-150 pickup truck.

Mr. Trotman was paid $4.5 million in salary and bonus last year, down from $7.5 million in 1994, according to its annual proxy statement filed with the Securities and Exchange Commission.

The pay cut was all in Mr. Trotman's bonus, which was halved to $3 million last year from $6 million in 1994. His base salary was unchanged at $1.5 million, as was his grant of stock options -- 350,000.

Ford also boosted directors' annual fees by $10,000 to $40,000, but said outside directors must maintain stock ownership in the company worth five times that amount.

Ford's board will shrink by two members this year as Colby Chandler and Kenneth Olsen reach the mandatory retirement age of 70. Last month, Ford elected to its board John Thornton, a partner at Goldman, Sachs & Co. in London.

General Motors Corp. Chairman and Chief Executive John Smith Jr. received $3.25 million in salary and bonus in 1995.

Mr. Smith received about $3.43 million in salary and bonus in 1994, the company said in its annual proxy statement.

The company said the chairman's bonus, which is based on profitability goals set for the company, declined 9.1 percent this year to $1.75 million from $1.93 million. His base salary was unchanged at $1.5 million.

"Even with the significant performance improvements during 1995 -- net income increased 40 percent -- final results were at a level below those established by the Executive Compensation committee for maximum bonus payments," the company said.

General Motors earned a record $6.9 billion, or $7.21 a share last year, up from $4.9 billion, or $5.15 a share, in 1994.

Mr. Smith also was awarded options on 150,000 shares of stock, compared with 120,000 options a year earlier, and $2.3 million in incentives to be paid in stock.

Pub Date: 4/10/96

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