Ford CEO Jim Hackett earned $16.3 million in 2017

James Hackett

Ford Motor’s CEO Jim Hackett earned salary, bonus and stock awards of $16.3 million in last year, where as adjusted pretax profit for the automaker fell $1.9 billion from 2016, the company stated on Thursday.

Consisting of pensions and perks, Hackett, who took the helm of the second biggest U.S. automaker in May, made $16.7 million.

His predecessor Mark Fields earned $15 million in salary, bonus and stock awards in last year, with a total compensation package of around $21 million.

That brought total CEO compensation to about $37 million during a year where the company earned a pretax profit $8.4 billion, decreasing from $10.3 billion in 2016.

Hackett was unexpectedly named as CEO, following investors’ growing unease regarding the automaker’s falling stock price and its ability to counter threats from longtime automotive competitors and upstarts in Silicon Valley.

Previously this month, Ford revealed ambitious plans to move the product portfolio from passenger cars to SUVs, bring more hybrid and pure electric vehicles, and decrease development and manufacturing expenses. The moves are aimed at increasing profits and share price.

Ford and the remaining U.S. auto industry is observing decreasing sales. New vehicle sales dropped 2 percent in last year after hitting an all-time high of 17.55 million units in 2016. Sales are expected to drop more in 2018 despite a strong economy because of rising interest rates. New vehicle sales also face a challenge from millions of less costly, nearly-new off-lease models going back to dealer lots.

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