UPDATE 2-New Ford CEO eligible for $13.4 mln in annual compensation

(Adds details on possible compensation, background on departure)

May 24 (Reuters) - Ford Motor Co said on Wednesday that 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, was named Monday to replace CEO Mark Fields.

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

He will receive $7 million in stock-based compensation and pocket a $1 million bonus for becoming CEO. He is also eligible for an annual bonus of up to $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.

Fields will also be eligible for a company retirement program, a voluntary separation program offered to some management employees. The automaker did not immediately disclose if Fields is subject to a non-compete agreement.

In March, Ford said Fields received total compensation of $22.1 million for 2016, up nearly 19 percent from $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 $5 million restricted stock-based grant.

He received total compensation of $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.

Ford replaced Fields amid investors' growing unease about the U.S. automaker's slumping stock price and its ability to counter threats from longtime rivals and Silicon Valley.

Ford shares were down nearly 1 percent Wednesday to $10.95.

Ford Chairman Bill Ford Jr., whose family effectively controls the U.S. No. 2 automaker, said Monday he wanted Hackett to speed up decision-making and cut costs, but did not offer specifics on how the new CEO should change operations.

Hackett said after discussing some management changes announced Monday that "there's more to come later in the week that will round out my team."

Ford, which announced plans to cut 1,400 white-collar positions last week, is expected to look at further significant cost cuts in the next three to six months, according to company officials, speaking on condition of anonymity as the plans have not been finalized. (Reporting by David Shepardson in Washington and Ankit Ajmera in Bengaluru; Editing by Steve Orlofsky and Chris Reese)