Ford chairman got $18.8 million, plus

Trotman, now retired, also exercised options

Executive suite

April 17, 1999|By BLOOMBERG NEWS

DETROIT -- Alex Trotman received $18.8 million in salary, bonus and other compensation in his final year as chairman and chief executive of Ford Motor Co., the world's second-largest carmaker.

Trotman, who retired Dec. 31, also received a previously undisclosed $24.1 million payment last year for his 1997 award under Ford's long-term incentive plan, which rewards executives for performance on stock appreciation, product quality and cost-cutting. He gained an additional $30.1 million from the exercise of previously granted stock options.

Ford disclosed 1998 compensation for its top five executives in a proxy statement filed with the U.S. Securities and Exchange Commission. Ford shares rose 82 percent during 1998, outpacing a 27 percent gain in the Standard & Poor's 500 index.

Without incentive payments, Trotman's compensation package represented a 50 percent increase from 1997, when he got about $12.4 million in salary, bonus, options and other pay.

His 1997 long-term incentive payment of $24.1 million, paid in 1998, was almost 2.5 times the size of $9.8 million payment for 1996. Ford determines the long-term incentives after the fiscal year ends, based on a variety of criteria over periods ranging from three to five years. The criteria included cost reduction, product quality, speed of developing new vehicles and relationships with fellow employees.

Trotman received a $2.5 million salary last year, up from $2 million in 1997. His 1998 bonus rose to $10 million from $7 million.

His successor, Jacques Nasser, received $15.8 million. More than half reflected the value of option and stock appreciation grants which he will not be able to exercise until various points in the future. Those were worth $8.9 million on the dates they were granted.

Nasser's long-term incentive grant for the periods ending Dec. 31, 1997, was almost $6.1 million. Nasser did not exercise any stock options in 1998 or 1997.

Pub Date: 4/17/99

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