Ford Motor Co. revealed in a federal filing that CEO Alan Mulally was awarded $1.95 million in stock one week after giving him $56.5 million in shares. This latest award for Mulally is in the form of stock grants that vested March 11. This was for Mulally’s performance in 2008, when the second-largest U.S. automaker had a record $14.8 billion loss.
John Stoll, a company spokesman, said that Mulally’s 2010 salary and benefits will be released in a proxy report in the next few weeks. Stoll said that Mulally’s leadership is widely regarded as “extraordinary," and so his compensation is reflective of Ford's goal of retaining a world-class CEO.
In 2006, Mulally joined Ford from Boeing Co, says Autonews. He was successful at turning around the company with his emphasis on quality and his plans to expand the lineup with small cars such as the Fiesta subcompact. In the last two years, Ford earned $9.28 billion after $30.1 billion in losses from 2006 through 2008.
On March 3, Ford paid Mulally unrestricted stock worth $56.5 million and gave Executive Chairman Bill Ford unrestricted shares valued at $42.4 million.
Some of the stock awards were withheld by Ford to cover their income taxes. Less taxes, Mulally got $33.4 million and Bill Ford got $25.1 million.
To cover income taxes, Ford also withheld some stock from Mulally's 2008 award, leaving him with $1.16 million after taxes. Stoll said that if Ford had not been able to achieve the strong results than the value of stock grants would have been much lower. He also said that it’s possible that there wouldn’t have been any payments.