Ford’s New COO Gets Almost $2 Million Raise to Spur Turnaround

(Bloomberg) -- Ford Motor Co.’s new chief operating officer, Jim Farley, is getting a raise worth almost $2 million to help engineer a turnaround at the struggling automaker.

Farley, previously Ford’s president of new business, technology and strategy, is to receive as much as $1.98 million in extra salary, bonus and stock in his new role, the company said Tuesday in a regulatory filing. Most of the increase in his compensation plan, which will total $8.29 million, is a boost to his annual stock grant.

The 57-year-old’s promotion takes effect March 1 along with the retirement of his primary rival at the company, Joe Hinrichs, 53. The moves were announced earlier this month.

Ford has been on a losing streak extended by the botched launch of the Explorer sport utility vehicle, which contributed to disappointing earnings results and a downbeat profit forecast for this year. Farley is now in position to eventually succeed Chief Executive Officer Jim Hackett, but first he has to help him execute an $11 billion restructuring that analysts say is moving too slowly.

“We cannot wait years and years,” Farley said in an interview on the day he was named COO. “In the context of our industry and how it’s changing, we have to accelerate.”

--With assistance from Anders Melin.

To contact the reporter on this story: Keith Naughton in Southfield, Michigan at knaughton3@bloomberg.net

To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester Dawson

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