DETROIT, March 5 Ford Motor Co Chief
Executive Alan Mulally this week was awarded performance bonuses
worth nearly $12 million, Ford disclosed to U.S. regulators on
The amount Mulally makes from the shares depends on their
value on the day he sells them. They were worth $11.7 million
based on Tuesday's closing price of $12.88.
Ford also said Mulally received $7 million of shares that
became fully vested this week, based on 2010 equity awards.
In addition, Mulally was awarded 745,526 shares in stock
options with a strike price of $12.75 a share, which was
Monday's closing price for Ford stock.
Ford filed documents with the U.S. Securities and Exchange
Commission on Tuesday showing the stock awards for Mulally and
other Ford executives.
Mulally, 67, has led the turnaround of the No. 2 U.S.
automaker since he became chief executive of a then-struggling
company in 2006.
Ford lost $30 billion between 2006 and 2008, and its share
price reached $1.01 in late 2008. Last year Ford made a net
profit of $5.7 billion, its fourth straight year in the black.
"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.
Mulally's 2012 pay will be revealed later this month. In
2011, Mulally was paid $2 million in salary and $5.5 million in
cash bonuses in addition to stock options and equity awards.
The 2013 stock options of 745,526 shares awarded Mulally
will be vested in thirds over the next three years. As stock
options, he will not make any money if the share price does not
go above $12.75.
Some 909,179 shares of restricted stock were granted this
week to Mulally as a 2012 performance bonus, as well as an
incremental bonus, Ford said.
The incremental bonus was awarded to Mulally for
successfully cutting the number of platforms (undercarriages for
Ford's vehicles), which makes vehicle manufacture more efficient
and was part of streamlining the company.
These shares will not vest until March 2015. About 45
percent of the 909,179 shares will be used to pay taxes, Ford
Another $7 million of stock, at Monday's closing share
price, came in the form of 543,734 shares from awards made in
2010 that became fully vested this week. The actual value of
those shares depends on when Mulally sells them. Ford will pay
taxes at a rate of about 45 percent of that award, as well.
Also on Tuesday, eight General Motors Co were awarded