The automaker did not immediately disclose if Fields is subject to a non-compete agreement.
The committee increased Hackett's Annualized base salary to $1.80 million from $716,000. He's also been approved for a $1 million bonus.
Now, Fields has already been replaced by Jim Hackett, who made his name as the head of office furniture manufacturer Steelcase - how that bodes for Ford's future products, we'll leave it to you do predict. He resigned from the Ford board immediately.
"I'm very thankful to Mark and he had a really terrific career here, but this is a time of unprecedented change", Executive Chairman Bill Ford said Monday at a press conference introducing Hackett as the new CEO. Despite Ford's stock slide during Fields's almost three years as CEO, the automaker earned record profits.
Raj Nair presenting the first production 2017 Ford GT
Fields will retire from the company effective August 1.
Hackett is eligible for a bonus that could triple his base salary each year.
He received total compensation of $6.7 million in 2016. He also received performance-based stock units worth $5.2 million over three years and stock units worth $1.75 million if he stays at Ford until 2020. This, and a perceived loss of ground to new rivals such as Tesla and Google in electric and autonomous auto development, saw Ford's share price fall by 40 per cent since Fields took over in 2014.
In March, Ford said Fields received total compensation of $22.1 million for 2016, up almost 19 percent from $18.6 million.