DEARBORN – Ford Motor Co. President and CEO Alan Mulally received $58.3 million in company stock this week as part of a 2009 long-term incentive pay package, the automaker disclosed Tuesday.
Mulally received 4.82 million shares of stock, but Ford withheld 1.97 million shares to pay the taxes on the stock award. After taxes, Mulally received 2.86 million shares of stock worth $34.5 million after taxes, the Detroit News reported.
Ford was awarded the shares as “stock units” in 2009, but they didn’t “vest” or become Mulally’s until Monday.
Ford spokesman Jay Cooney said the company’s compensation plan ties executives’ pay to performance.
“Our compensation philosophy is to align the interests of our leadership with those of our shareholders,” Cooney said. “To do this, we put the vast majority of their compensation at risk through performance-based grants. Ford’s stock was $1.96 a share at the time of the 2009 awards and is $12 a share today. That is more than a 500 percent increase, and this benefits all stakeholders in the Ford turnaround.”
Mulally also received a new stock award from Ford’s board of directors of 376,016 shares of stock that will vest in 2014. Those shares are currently valued at $4.55 million.
Mulally also was awarded options to buy 1.275 million shares of Ford stock at $12.46, which he could exercise over three years with 33 percent per year. Ford’s CEO options have no immediate value.
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