Ford Motor Ford Motor Chief Executive Alan Mulally, who final year entertained thoughts of jumping to Microsoft Microsoft, received $ 13.8 million in Ford stock for the automaker’s functionality in 2013, which saw record income in North America and strong development China.
The award represents only part of his compensation for 2013. The balance of his pay out package deal, like salary and benefits, will be disclosed later this month in the company’s yearly proxy statement to shareholders.
He is restricted from selling the 882,352 shares until finally March 4, 2016, under the company’s extended-phrase incentive plan which aims to tie executive shell out to firm overall performance. Ford earned $ 7.16 billion in 2013 on $ 147 billion in income.
He is now free, however, to promote 376,016 shares, worth $ 5.9 million at yesterday’s closing cost, that he received in 2012 for the company’s performance in 2011. Companies increasingly have attached restrictions to this kind of big stock awards, adding problems that have to be met for the executive to totally personal the shares, as a way to align management and stockholder interests. Ford offered no details on Mulally’s incentive targets.
Mulally, 68, also received 613,747 stock options as part of the company’s incentive plan, according to a filing these days with the U.S. Securities and Exchange Commission. The choices, with a strike price tag of $ 15.37, vest in thirds yearly more than the up coming 3 years.
Hourly employees in the U.S., meanwhile, will see a share of the company’s profits, also, underneath Ford’s collective bargaining contract with the United Car Workers union. Ford said 47,000 blue-collar employees will get an typical profit-sharing verify of $ 8,800 on March 13.
Mulally, who joined Ford from Boeing Boeing in 2006, is credited with major a robust turnaround that enabled the second-greatest U.S. automaker to avoid bankruptcy during the credit crisis for 2008-2009. He refocused the company on its core brand and restored income by slashing charges whilst at the very same time strengthening Ford’s merchandise lineup with fuel-effective engines and high-tech features.
“We are committed to align executive compensation with the company’s enterprise overall performance and to tying a important portion of executive compensation to extended-phrase shareholder value,” explained Todd Nissen, a Ford spokesman.
Its stock, which was well worth about $ 2 5 many years ago, is now worth $ 15.67. Nissen said Ford outperformed the Common & Poor’s 500 Index more than the previous 5 many years and its stock value was up 20 percent in each of the last 2 years. Crosstown rival Common Motors Common Motors rose 42 percent last year.