Ford pays former CEO $4.9 M

Posted 4:33PM on Tuesday 9th April 2002 ( 23 years ago )

DETROIT - Ousted Ford Motor Co. president and chief executive Jacques Nasser was paid $4.9 million for 2001 even though he retired under pressure in late October, according to a proxy statement filed Tuesday. Nasser's pay included $1.75 million in salary and nearly $3.1 million in other compensation. He also received options to buy 1.375 million shares of common stock, according to the filing made with the Securities and Exchange Commission. Since Nasser retired, and was not fired by the company, he is receiving an annual pension of between $1.6 million and $1.7 million based on his 34 years with the company, Ford spokesman David Reuter said. The nearly $5 million in earnings last year for Nasser represented a hefty pay cut from the year before. In 2000, Nasser made about $12 million, including a $7.7 million bonus. No executive bonuses were paid in 2001. Nasser was forced to resign Oct. 29, a move that came as Ford was plagued by eroding sales, questions about vehicle quality and the ongoing Firestone tire crisis. His CEO duties were assumed by chairman Bill Ford Jr. In some cases, Ford Explorers equipped with Firestone tires rolled over after tire tread separations. In August 2000, Bridgestone/Firestone Inc. recalled 6.5 million of the tires, but the safety of Ford's most popular sport utility vehicle was called into question. In February, the National Highway Traffic Safety Administration denied a request by the tire-maker to launch a defect investigation into the Explorer. Ford said its cash compensation for its top five executives decreased by more than 60 percent from the previous year, largely because no executive bonuses were paid. Bill Ford Jr. received no cash salary for being chief executive officer, instead taking about $250,000 in stock options for the two months of 2001 that he was CEO. Ford also received $39,494 in compensation, and $375,000 in restricted shares of stock for his role as chairman. Nick Scheele, Ford's chief operating officer, earned $798,394 for 2001, plus stock options. Scheele became COO after Nasser resigned. Wolfgang Reitzle, group vice president, Premier Automotive Group, earned $1.2 million. Donald Winkler, former group vice president and chairman, Ford Financial, earned $849,470 for 2001, which included $758,333 in salary, and other compensation. He also was awarded options to purchase 60,000 shares of common stock. Winkler resigned last December two weeks after the automaker said it expected to report a greater-than-expected fourth quarter loss, in part because it was boosting its credit loss reserves. However, no official reason was given for his resignation, and the automaker said at the time it was a ``mutual decision.'' In late trading on the New York Stock Exchange, shares of Ford stock were down 6 cents to $15.05.

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