Ford awards Mulally $13.8 million in stock for 2013 performance
Mulally will receive other compensation for 2013, including salary and benefits, to be disclosed later this month.
DETROIT (Bloomberg) -- Ford Motor Co. awarded CEO Alan Mulally $13.8 million in stock for the automaker’s performance last year when its profits grew in North America and sales accelerated in China.
Ford also gave its top executive 613,747 stock options as part of an incentive plan for 2013, according to a filing Thursday with the U.S. Securities and Exchange Commission.
Mulally is restricted from selling the 882,352 shares of stock he received until March 4, 2016. The options, with a strike price of $15.37, vest in thirds annually over the next three years.
The automaker earned $7.16 billion in 2013 and its shares climbed 19 percent, trailing a 30 percent jump for the Standard & Poor’s 500 Index and 42 percent gain in General Motors shares.
Mulally, 68, will receive other compensation for 2013, including salary and benefits, to be disclosed later this month.
Though briefly wooed by Microsoft Corp. last year to be its CEO, Mulally has said he’ll stay at Ford at least through December. Since arriving from Boeing Co. in 2006, he has led a turnaround that let Ford avoid the bailouts and bankruptcies that befell predecessors of GM and Chrysler Group.
“We are committed to align executive compensation with the company’s business performance and to tying a significant portion of executive compensation to long-term shareholder value,” Ford spokesman Todd Nissen said, adding that Ford outperformed the S&P 500 over the past five years.
In addition to the new stock awards, Mulally now is free to sell 376,016 Ford shares, worth $5.9 million at Wednesday’s closing price, which he received in 2012 for the company’s performance in 2011.
Mulally is credited with cultivating a more collaborative culture at Ford, which had long been characterized by backbiting.
He also slashed costs by closing factories, cutting workers and selling off Ford’s European luxury lines, including Jaguar. He restored profits by broadening Ford’s lineup with fuel-efficient models loaded with technology, such as voice-activated controls.
Ford has earned $42.3 billion in the last five years after losing $30.1 billion from 2006 through 2008.
The company's stock, which traded below $2 five years ago, rose 0.3 percent to close at $15.67 Thursday in New York.
Mulally has received total compensation of about $303 million from Ford since 2006 and last year made him the world’s highest paid automotive CEO.
For 2012, Ford paid Mulally almost $21 million in salary, bonus, stock, options and other compensation. He also received an additional stock award worth $11.7 million last year.
The company revealed last year that it would give Mulally another bonus after he leaves the company in reward for leading the turnaround. The automaker didn’t disclose the amount.
Ford shuffled its leadership team in late 2012 to prepare for Mulally’s eventual departure. Mark Fields, Ford's Americas chief, was elevated to COO, positioning him as front-runner to take over as CEO when Mulally retires.Contact Automotive News