How Much Does A CEO Of Ford Make? Find Out Here

How Much Does A CEO Of Ford Make?

Jim Farley, the CEO of Ford, has been causing a stir lately.

Embarking on a road trip in an electric vehicle, he boldly pointed out the significant challenges facing EVs in terms of battery production and charging infrastructure.

Despite this, Ford is actively striving to tackle these issues, with Farley leading the charge.

But just how much does Farley earn, and what path led him to his prestigious position?

How Much Does A CEO Of Ford Make? An image of Ford CEO Jim Farley swarmed by members of the media after the 2024 F- 150 reveal at Hart Plaza in Detroit on Tuesday, sept. 12,2023.
A CEO Of Ford Make? An image of Ford CEO Jim Farley swarmed by members of the media after the 2024 F-150 reveal at Hart Plaza in Detroit on Tuesday, Sept. 12,2023. Provided By C. John Anter

 

How Much Money Does Jim Farley Make?

The Detroit Free Press reported that Farley earned $20,996,146 in 2022, while the median annual total for all Ford employees stood at $74,691.

Comparing Farley’s salary to the median worker’s compensation reveals an average ratio of 281-to-1.

Following a less-than-ideal productivity and efficiency rating in 2022, Farley opted to eliminate executive performance bonuses.

The Detroit Free Press detailed Farley’s compensation breakdown, revealing $1.7 million in salary, nearly $15.2 million in stock awards, close to $2.8 million in incentive plan compensation, and the remaining balance attributed to items like evaluation vehicles and life insurance/death benefit.

The CEO of Ford also enjoys additional benefits, including $903,857 allocated for personal aircraft usage and a $2,754,000 incentive bonus package.

It’s noteworthy that Farley’s earnings have declined in recent years.

In 2022, his income totaled $20,996,146, whereas in 2021, it reached $22,813,000, reflecting a decrease of $1,816,854.

How Much CEO Jim Farley Earned In 2023

In 2023, Ford’s CEO, Jim Farley, earned a total compensation of $26,470,033, as reported in documents submitted by the Dearborn automaker to the U.S. Securities and Exchange Commission on Friday.

The CEO’s total compensation stands at a ratio of 312-to-1 compared to the median annual total compensation of all employees, a disclosure mandated in the annual executive compensation report to the U.S. Securities and Exchange Commission.

This marks an increase from the 281-to-1 ratio recorded in 2022.

The median yearly total pay for all Ford staff, excluding the CEO, rose to $84,829 from $74,691 in the previous year.

As of December 31, 2023, Ford reported a workforce of about 182,698 individuals, with 93,159 (51%) based in the United States.

Ford disclosed in its February earnings report that its UAW workforce would be granted profit-sharing payments averaging $10,416 for the year.

Remarkably, these payments increased despite the 2023 UAW strike affecting Ford, General Motors, and Stellantis, the producers of Jeep, Ram Trucks, Dodge, Chrysler, and Fiat vehicles.

The labor union negotiated a groundbreaking agreement, compensating hourly workers for their past contributions and sacrifices to support the automakers.

On Friday, Ford detailed nearly $80 million in executive compensation for its top five executives in 2023: Farley, Chief Financial Officer John Lawler, Board Executive Chair Bill Ford, Chief Electric Vehicle, Digital, and Design Officer Doug Field, and Peter Stern, President of Integrated Services.

Jim Farley Has A Long History With Ford

Ford states that Farley has been with the company since 2007, having previously served as the group vice president and general manager of Lexus.

In this capacity, he oversaw advertising, incentives, internet operations, market planning, merchandising, and sales promotion.

Farley played a pivotal role in Toyota‘s strategic planning, product development, and marketing endeavors, spanning both the U.S. and Europe.

His contributions were particularly noteworthy during the launch phase of the Scion brand.

Upon transitioning to Ford, Farley assumed various roles, including Executive Vice President and President of Global Markets.

Subsequently, he was appointed President of New Businesses, Technology, and Strategy by Ford.

Progressing further, Farley took on the role of Chief Operating Officer, where he spearheaded initiatives aimed at elevating Ford’s global automotive operations.

He played a key role in establishing Lincoln’s presence in the Chinese market, solidifying its position there.

Jim Farley Has A Sincere Love Of Cars

Farley’s love for automobiles doesn’t stop when he goes home.

He loves to race vintage cars and also collects them.

When Farley isn’t tied up in business calls, you’ll likely catch him exploring the globe behind the wheel of his prized collection: a 1965 Ford GT 40, a 1966 427 Cobra, and a 1978 Lola 298.

Farley also hosts a podcast called ‘DRIVE’. Unsurprisingly, it’s all about America’s interest in cars.

And when he’s not cruising in these classics, he occasionally takes his other vehicles out for a spin on the racetrack.

As CEO, Farley embraces controversy rather than avoiding it.

He champions the widespread adoption of EVs while acknowledging challenges such as range anxiety, inadequate charging infrastructure, and the contentious aspects of battery production.

Farley has taken responsibility for this and is keen to chart a path forward.

In this endeavor, he has collaborated with Tesla to grant Ford drivers access to Tesla’s renowned Supercharger Network.

Through this partnership, Elon Musk and Farley have somewhat set aside their rivalry, at least in terms of EV driving.

Stellantis CEO Salary

Stellantis CEO Carlos Tavares received a total compensation of $39.5 million (36.5 million euros) in 2023, a sum about 518 times greater than the average Stellantis employee.

However, the company’s reported figure for his actual earnings is lower, as disclosed in a filing with the U.S. Securities and Exchange Commission on Thursday evening.

Tavares’ overall compensation for the previous year surpasses his direct payments.

This sum encompasses various components beyond his salary and bonuses, such as retirement perks.

The company disclosed that his total compensation, encompassing both “cash and vested equity awards,” amounted to $25.4 million (23.5 million euros).

Breaking down his compensation, Tavares received a base salary of $2.16 million (2 million euros), a short-term incentive worth $6.26 million (5.8 million euros), a long-term incentive valued at $28.3 million (26 million euros), post-retirement benefits totaling $2.1 million (1.95 million euros), and fringe benefits valued at $686,885 (634,697 euros).

The amount represents a rise from the $24.8 million (equivalent to 23.5 million euros) reported as Tavares’ overall earnings in 2022.

All monetary values are determined based on currency exchange rates at the time of disclosure.

In 2023, the mean employee remuneration at Stellantis stood at $76,193.

Outlined across 320 pages, the filing detailed the corporation’s strategy regarding executive pay.

Toyota CEO Salary

Reuters reported (June 30, 2023) that Toyota Motor chairman Akio Toyoda received a total compensation package of 999 million yen ($6.90 million) in the financial year ending in March, marking a 46% increase from the previous year, as per the firm’s filing on Friday.

The filing revealed that 735 million yen of the total package stemmed from stock options.

Japanese news agency Jiji Press noted that this figure represented the highest compensation in the automaker’s history.

Conclusion

Jim Farley’s tenure as CEO of Ford has been marked by both scrutiny and innovation.

His leadership amidst the challenges facing the automotive industry, particularly in the transition to electric vehicles, showcases a commitment to addressing critical issues head-on.

Farley’s compensation, though substantial, reflects a nuanced relationship with executive pay and company performance.

His trajectory within Ford, from pivotal roles in global markets to strategic initiatives, underscores a deep-rooted dedication to the company’s success.

Beyond the boardroom, Farley’s passion for cars is palpable, driving both his professional decisions and personal pursuits.

As he navigates controversies and collaborations alike, Farley’s vision for Ford’s future remains steadfast, guided by a desire to embrace change and drive progress in the ever-evolving automotive landscape.

Frequently Asked Questions (FAQs)

  • What is Jim Farley’s total compensation as CEO of Ford, and how does it compare to the median employee’s salary?

Jim Farley earned a total compensation of $26,470,033 in 2023, reflecting a ratio of 312-to-1 compared to the median annual total compensation of all Ford employees.

This ratio increased from the previous year’s 281-to-1.

The median yearly total pay for all Ford staff, excluding the CEO, rose to $84,829 in 2023.

  • What is Jim Farley’s background within Ford, and how has he contributed to the company’s growth?

Jim Farley has been with Ford since 2007, holding various significant roles such as Executive Vice President and President of Global Markets, President of New Businesses, Technology, and Strategy, and Chief Operating Officer.

His contributions include expanding Lincoln’s presence in the Chinese market, spearheading initiatives to elevate Ford’s global automotive operations, and fostering strategic partnerships.

  • How does Jim Farley balance his professional responsibilities as CEO with his personal interests in automobiles?

Jim Farley’s love for cars extends beyond his professional duties, as he is known to race vintage cars and collect them.

His personal collection includes iconic vehicles like a 1965 Ford GT 40, a 1966 427 Cobra, and a 1978 Lola 298.

Farley’s passion for automobiles influences his approach to business, as he actively champions the widespread adoption of electric vehicles while embracing challenges such as range anxiety and charging infrastructure inadequacies.

  • What is the total compensation of the Toyota CEO, and how does it compare to the average employee’s salary?

The Toyota CEO’s total compensation package amounted to 999 million yen ($6.90 million) in the financial year ending in March, as per the firm’s filing.

This figure represents a 46% increase from the previous year, with a significant portion derived from stock options.

The comparison to the average employee’s salary provides insight into the CEO-to-worker pay ratio and the company’s approach to executive compensation.

  • How does the compensation of the Stellantis CEO compare to the average employee’s salary within the company?

The Stellantis CEO received a total compensation of $39.5 million (36.5 million euros) in 2023, a substantial sum exceeding the average employee’s salary by about 518 times.

However, the disclosed figure includes various components beyond salary and bonuses, such as retirement perks.

Understanding this comparison sheds light on the CEO’s remuneration structure and its alignment with company performance.

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