Jim Farley, who serves as both the President and Chief Executive Officer of Ford Motor Company, earned $26.5 million in 2023. This compensation package represents a significant increase from the previous year.
Jim Farley's 2023 Compensation
The total compensation for Jim Farley in 2023, as detailed in the company's 2024 proxy statement, reflects his leadership role at the multinational automotive giant. This figure includes various components typical of executive pay in large corporations.
- Total Compensation (2023): $26.5 million
- Year-over-Year Change: 26% increase
- Source of Information: Ford Motor Company's 2024 proxy statement
| Role | Compensation (2023) | Year-over-Year Change | Source |
|---|---|---|---|
| President & CEO, Ford Co. | $26.5 million | +26% | 2024 Proxy Statement |
Understanding Executive Compensation
Executive compensation packages, like the one received by Ford's President and CEO, are typically structured to incentivize performance and align leadership interests with those of shareholders. These packages often consist of several elements:
- Base Salary: A fixed annual amount of cash compensation.
- Cash Bonuses/Incentives: Performance-based payments tied to specific financial or operational targets.
- Stock Awards: Grants of company stock, often vesting over several years, to encourage long-term commitment.
- Stock Options: The right to purchase company stock at a predetermined price, benefiting the executive if the stock price rises.
- Other Compensation: This can include perks, retirement contributions, and other benefits.
The significant portion of executive pay, especially for CEOs, often comes from equity-based compensation (stock awards and options), which links their earnings directly to the company's market performance.
