• by Karl Greenberg , March 25, 2009

In a preliminary notice filed with the U.S. Securities and Exchange Commission, Ford Motor Company said it will reduce President and CEO Alan Mulally's salary for 2009 and 2010 by 30%.

The company said his salary was $2 million last year, with no bonus. The company will also end 2009 merit increases for salaried employees in the U.S. and most other global markets and annual incentive compensation bonuses for 2008 and 2009 performance periods for global salaried employees. The company says it is also ending cash payment to Ford's Board of Directors in 2009.

"Ford is acutely aware that current economic conditions have had a significant adverse impact on our shareholders, customers, dealers, employees and other stakeholders," the company said in the preliminary proxy. "We do not view these actions as merely symbolic, but as a necessary step in the restructuring of our business in which all our stakeholders have been asked to participate."

The proxy also provides details of total 2008 compensation for five named executive officers, with the amounts shown in the proxy statement for stock and option awards representing amounts the company is required to expense under applicable accounting rules -- not actual compensation received by the named executive officer. Any such compensation will be determined by future company and stock price performance.

The company says Lewis Booth, executive vice president and CFO, earned $1.075 million in salary last year, a decline of 66% in cash compensation. Mark Fields, executive vice president and president, The Americas, earned $1.3 million last year. Jim Farley, vice president of marketing, made $700,000 in salary. He also received a bonus award of $660,000 that Ford paid him as incentive to leave Toyota.

Ford has also elected Richard A. Gephardt -- former U.S. House of Representatives majority leader, who served 14 terms in the House -- and Anthony F. Earley, Jr. to the company's Board of Directors, effective immediately. Gephardt is now president and CEO of the Gephardt Group, a global market consulting firm.