This week Ford CEO Alan Mulally was offered $12 million in performance bonuses.
The total amount Alan Mullaly makes from the shares depends on the price with which they are sold. On Tuesday’s closing price of $12.88 the shares were worth $11.7 million. Based on the 2010 equity awards, Alan Mulally also received 745,526 shares in stock options for the share price of $12.75. Between 2006 and 2008 Ford lost $30 billion and reached a share price of $1.01 in late 2008. In 2012 the automaker made a net profit of $5.7 billion.
“We are committed to aligning executive compensation with the company’s business performance and to tying a significant portion of executive compensation to long-term shareholder value,” said Ford spokesman Jay Cooney.
In 2011 Ford’s CEO received $5.5 million in cash bonuses and $2 million in salary, and the payment for 2012 will be revealed by the end of this month. Mulally was granted almost 909,179 shares of restricted stock as a performance and incremental bonuses for 2012. The shares will not vest until March 2015 and the automaker will use 45% of the 909,179 shares to pay taxes.