Ford Motor Co (F.N) said on Wednesday new Chief Executive James Hackett is eligible for at least $13.4 million in total annual compensation.

Hackett, 62, a former chief executive of furniture manufacturer Steelcase Inc (SCS.N), was named Monday to replace CEO Mark Fields.

Hackett will earn a US$1.8 million annual salary, up from US$716,000 at his previous job as chairman of the Ford unit developing self-driving cars and related projects.

He will receive US$7 million in stock-based compensation and pocket a US$1 million bonus for becoming CEO. He is also eligible for an annual bonus of up to US$3.6 million, plus compensation from his service at Ford's mobility unit.

Fields will retire from the company effective Aug. 1. He resigned from the Ford board immediately. He will be eligible for pro-rated incentive compensation through Aug. 1.

In March, Ford said Fields received total compensation of US$22.1 million for 2016, up nearly 19 per cent from US$18.6 million.

Joe Hinrichs, head of the Americas since December 2012, who was named on Monday to manage global product development, manufacturing and labor affairs, purchasing, and environmental and safety engineering, received a US$5 million restricted stock-based grant.

He received total compensation of US$6.7 million in 2016.

Some of the compensation for Hackett will vest over three years. Hackett was elected to Ford's board effective Friday.