Here's the value of Ford CEO Jim Farley's 2023 compensation package

Ford Motor Co. CEO Jim Farley's 2023 compensation package totaled nearly $26.5 million — up 26% from 2022's following changes to the awarding of stock grants.

The total package that Farley, 61, earned in 2023 included an unchanged base salary of $1.7 million. Most of the upped value in his and other executives' packages came from an increase in the value reported of stock awards after the automaker changed its calculation of the grants by hinging a majority of their vestment on future shareholder returns relative to other corporations.

The automaker reported the value of those stock awards as $20.3 million, which is up 26% from 2022, though a fraction of that so far has been vested. The total value could differ based on Ford's stock worth when those awards vest after a certain amount of time or, for most, the performance metric is met.

Farley's bonuses decreased 13% to almost $2.4 million after the automaker missed certain performance targets. The automaker didn't disclose which. Farley also received more than $2 million worth of other compensation, up 46% year-over-year, in the form of perks like the use of private aircraft and company vehicles.

Farley's total compensation amounted to 312 times the median annual total compensation of all Ford employees last year: $84,829. That was up from 281 times in 2022, when the median employee compensation was $74,691.

Executive compensation was disclosed in an annual proxy statement filed Friday with the U.S. Securities and Exchange Commission. Last year, Ford flipped an annual net loss to profit. In 2023, it recorded $4.3 billion in net income, up from a $2 billion net loss in 2022. Despite facing challenges around quality and a United Auto Workers strike, Executive Chairman Bill Ford Jr. said it was a "solid year."

"Our 2023 results underscore the potential of our plan, our leadership, and our people," he said in a letter to shareholders in the proxy statement. "Looking ahead, we have an opportunity to deliver a very strong 2024 and differentiate Ford like never before."

Ford's total compensation was $20.6 million in 2023, up 19% from $17.3 million in 2022. The package included an unchanged $1.7 million salary. His stock awards as reported were up 23% to $15.8 million. Bonuses were down 13% to $705,600.

“Bill’s and Jim’s salaries were flat with 2022 and their bonuses were down — and well below target levels — based on the overall performance of our business," spokesperson T.R. Reid said. "Most of their potential compensation is directly tied to the best interests of shareholders, primarily in stock grants. The reported value of those grants is hypothetical, since they’re dependent on future performance. And much of the estimated value of the grants was higher because of a change in how it’s calculated specifically as a result of our decision to link the stock grants exclusively to total shareholder return.”

The report drew criticism from UAW President Shawn Fain, who in a recent statement criticized remarks from Farley about rethinking where the automaker builds its vehicles. Fain's statement came after the union stopped production at the Kentucky Truck Plant during last fall's targeted strike, despite Ford employing more UAW members than the other two companies and building all of its full-size trucks in UAW-represented plants.

“Just a few weeks ago Farley was crying to the press about how the UAW’s record contracts were forcing the company to rethink where they build their vehicles, but they have no problem finding the money to give him a 26% pay raise to $26.5 million a year," Fain said in a statement Friday. “Let’s be clear: this is corporate greed, plain and simple."

The company is required to report compensation packages for all of its top five named executives. They all saw their compensation packages increase except for Peter Stern, president of integrated services, who joined Ford last year.

Chief Financial Officer John Lawler's total compensation was about $10 million in 2023, up 12%. His salary was up 5.5% to almost $1.2 million. The $5.4 million in stock awards as reported were down 17%. Bonuses were up 27% to $1.4 million.

Doug Field is the chief advanced product development and technology officer. His compensation of $15.3 million was up 1.7%. His base salary rose 2.7% to $513,500. The value of stock awards was reported as basically flat for him at $14.2 million. Bonuses totaled $440,748, up 32%.

Stern received $8.3 million last year after starting in August at Ford. He came from Apple Inc.

For 2023, executives' annual bonuses were based on the company's performance on percentage margin for adjusted operating income, quality improvement, electric vehicle growth and growth in valued-added services. Their payout is based on a formula that includes their base salary, and modifiers including a business performance factor and an individual performance factor. Their individual performance factors were set at 84% last year.

Rival Stellantis NV's package to CEO Carlos Tavares last year included direct compensation, incentives, non-vested stock grants and other benefits. For his third year leading the maker of Jeep SUVs, Ram pickup trucks and other vehicles, the total remuneration was $39.5 million.

General Motors Co. hasn't released its executive compensation numbers for 2023. Its proxy statement usually is filed in April. In 2022, GM CEO Mary Barra was the highest-paid Detroit auto executive with a $28.97 million package.

Ford will host its annual meeting virtually at 8:30 a.m. May 9.

bnoble@detroitnews.com

@BreanaCNoble