Ford Motor Co. chief executive Alan Mulally has received $13.8 million in stock for the carmaker’s performance in 2013. Ford also gave its Mulally 613,747 stock options as part of an incentive plan for 2013, according to a filing with the United States Securities and Exchange Commission. Mulally cannot sell the 882,352 shares of stock he received until March 4, 2016.
The options, having a strike price of $15.37, vest in thirds annually over the next three years. Ford posted $7.16 billion in earning in 2013 while its shares surged 19 percent. Mulally’s other compensations for 2013, including salary and benefits, will be disclosed in March.
He was considered as a candidate for the top post at Microsoft Corp. last year to be its CEO, but said he will remain at Ford at least through December. Mullaly has led a Ford turnaround that allowed the carmaker avoid the bailouts and bankruptcies that sank 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.
In addition to the new stock awards, Mulally is now unrestricted to sell 376,016 Ford shares he received in 2012 for the carmaker’s performance in 2011. Mulally is credited with cultivating a collaborative culture at Ford as well as cutting costs by closing sites, slashing jobs and selling off Ford’s European luxury lines like Jaguar. He was able to regain Ford’s profitability by broadening its lineup with fuel-efficient models loaded with technology. [source: Bloomberg]