Ford pays CEO $22 million, UAW cries foul

By Kevin Krolicki and David Bailey

DETROIT (Reuters) - Ford Motor Co (F.N: Quote, Profile, Research) reported on Friday that Chief Executive Alan Mulally earned more than $22 million in 2007, citing progress in revamping both the strategy and structure of the struggling No. 2 U.S. automaker.

The compensation to Mulally and other executives drew sharp and immediate criticism from United Auto Workers President Ron Gettelfinger, who called the payments "excessive and unjustified" given sacrifices the union's members agreed to make in the 2007 contract.

"We did not sacrifice so that management could find a way to reward themselves with higher compensation," Gettelfinger said in a statement.

Ford, which lost $2.7 billion in 2007 and is targeting a return to profitability in 2009, noted Mulally had steered through a new four-year contract with the UAW that will allow it to hire new workers at lower wages as part of its reason for his pay package.

Last month, Ford said it would pay bonuses to all employees in North America, including hourly workers who received $1,000 payouts.

In a statement issued with its annual report, Ford said Mulally's pay for 2007 was $22.75 million, including grants of stock-based compensation and a $7 million bonus.

That compared with $39 million in total compensation Mulally was paid in 2006, when he was hired away from Boeing Co (BA.N: Quote, Profile, Research) and received a signing bonus.

Ford paid Chief Financial Officer Don LeClair $12.7 million, including a $3 million bonus. Mark Fields, the head of Ford's operations in the Americas and a candidate to succeed Mulally, was paid $14.2 million.