DETROIT Ford Motor Co (F.N) Chief Executive Alan Mulally this week was awarded performance bonuses worth nearly $12 million, Ford disclosed to U.S. regulators on Tuesday.
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 said.
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 (GM.N) were awarded restricted stock.
(Reporting By Bernie Woodall in Detroit)