Ford Rewards Mulally With $13.8 Million In Stock – Forbes
Ford Motor Ford Motor Chief Executive Alan Mulally, who last year entertained thoughts of jumping to Microsoft Microsoft, received $13.8 million in Ford stock for the automaker’s performance in 2013, which saw record profits in North America and strong growth in China.
The award represents only part of his compensation for 2013. The balance of his pay package, including salary and benefits, will be disclosed later this month in the company’s annual proxy statement to shareholders.
He is restricted from selling the 882,352 shares until March 4, 2016, under the company’s long-term incentive plan which aims to tie executive pay to company performance. Ford earned $7.16 billion in 2013 on $147 billion in revenue.
He is now free, however, to sell 376,016 shares, worth $5.9 million at yesterday’s closing price, that he received in 2012 for the company’s performance in 2011. Companies increasingly have attached restrictions to such big stock awards, adding conditions that must be met for the executive to fully own the shares, as a way to align management and stockholder interests. Ford provided no details on Mulally’s incentive targets.
Mulally, 68, also received 613,747 stock options as part of the company’s incentive plan, according to a filing today with the U.S. Securities and Exchange Commission. The options, with a strike price of $15.37, vest in thirds annually over the next three years.
Hourly workers in the U.S., meanwhile, will see a share of the company’s profits, too, under Ford’s collective bargaining contract with the United Auto Workers union. Ford said 47,000 blue-collar employees will receive an average profit-sharing check of $8,800 on March 13.
Mulally, who joined Ford from Boeing Boeing in 2006, is credited with leading a strong turnaround that enabled the second-largest U.S. automaker to avoid bankruptcy during the credit crisis for 2008-2009. He refocused the company on its core brand and restored profits by slashing costs while at the same time improving Ford’s product lineup with fuel-efficient engines and high-tech features.
“We are committed to align executive compensation with the company’s business performance and to tying a significant portion of executive compensation to long-term shareholder value,” said Todd Nissen, a Ford spokesman.
Its stock, which was worth about $2 five years ago, is now worth $15.67. Nissen said Ford outperformed the Standard & Poor’s 500 Index over the past five years and its stock price was up 20 percent in each of the last two years. Crosstown rival General Motors General Motors rose 42 percent last year.