Alan Mulally, Ford Motor President and CEO, received this week $58.3 million in company stock as part of the 2009 long-term incentive pay package.
Initially Mulally received 4.82 million shares of stock, but 1.97 million were used by the company to pay the taxes on the stock award, the CEO remaining with 2.86 million shares worth $34.5 million after taxes. He also received 376,016 shares of stock ($4.55 million) from the company’s board of directors, which will vest in 2014. Ford Executive Chairman Bill Ford Jr. was also awarded 175,473 shares ($2.1 million) that will vest in 2014 and 595,238 stock options which give him the possibility to buy shares at $12.46.
“Our compensation philosophy is to align the interests of our leadership with those of our shareholders,” said Ford spokesman, Jay Cooney. “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.”