Ford chief Alan Mulally awarded $58.3M in company stock

jpd80 · 07-03-2012, 09:49 PM

Quote:

LINK

Ford Motor Co. President and CEO Alan Mulally received $58.3 million in company stock this week as part of a
2009 long-term incentive pay package, the automaker disclosed Tuesday.

Mulally received 4.82 million shares of stock, but Ford withheld 1.97 million shares to pay the taxes on the stock award.

After taxes, Mulally received 2.86 million shares of stock worth $34.5 million after taxes.

Ford was awarded the shares as "stock units" in 2009, but they didn't "vest" or become Mulally's until Monday.

Ford spokesman Jay Cooney said the company's compensation plan ties executives' pay to performance.

"Our compensation philosophy is to align the interests of our leadership with those of our shareholders," Cooney said.
"To do this, we put the vast majority of their compensation at risk through performance-based grants. Ford's stock
was $1.96 a share at the time of the 2009 awards and is $12 a share today. That is more than a 500 percent increase,
and this benefits all stakeholders in the Ford turnaround."

Mulally also received a new stock award from Ford's board of directors of 376,016 shares of stock that will vest in 2014.
Those shares are currently valued at $4.55 million.

Mulally also was awarded options to buy 1.275 million shares of Ford stock at $12.46, which he could exercise over
three years with 33 percent per year.

Ford's CEO options have no immediate value — since Ford's stock closed at $12.09 on Tuesday.

Ford Executive Chairman Bill Ford Jr. was awarded 175,473 shares worth $2.1 million that will vest in 2014.
He also received 595,238 stock options that allow him to buy shares of stock at $12.46. The conditions on Mulally's
options also apply to Ford's.

Today's higher stock price explains why Mulally received 12 times more shares of stock in 2009 than this year.

The compensation of top Ford executives was an issue last fall during talks with the United Auto Workers union.

Impressive income, bet he's glad he left Boeing.

Kryton · 07-03-2012, 10:27 PM

Disgraceful.

Scott · 07-03-2012, 10:36 PM

Quote:

Originally Posted by davway

Disgraceful.

I strongly disagree. Why?

jpd80 · 07-03-2012, 11:09 PM

Quote:

Originally Posted by davway

Disgraceful.

They paid him in stock which he is free to sell and get his money, it cost Ford basically nothing to do it...

Ford_The_Win · 07-03-2012, 11:37 PM

They must have given him a big chunk of stock, Ford is still junk stock on the share market as far as I am aware.

T3ts50 · 07-03-2012, 11:41 PM

Quote:

Originally Posted by Ford_The_Win

They must have given him a big chunk of stock, Ford is still junk stock on the share market as far as I am aware.

It's currently trading at around $11 a share, and around half the price of GM.

Scott · 08-03-2012, 12:16 AM

Quote:

Originally Posted by T3ts50

It's currently trading at around $11 a share, and around half the price of GM.

GM's MC is $38.49b (around 1.5b shares), Fords is $45.95b (around 3.8b shares).

jpd80 · 08-03-2012, 12:58 PM

Quote:

Originally Posted by Ford_The_Win

They must have given him a big chunk of stock, Ford is still junk stock on the share market as far as I am aware.

Read the article, the figures are there

Quote:

Mulally received 4.82 million shares of stock, but Ford withheld 1.97 million shares to pay the taxes on the stock award.

Mulally also received a new stock award from Ford's board of directors of 376,016 shares of stock that will vest in 2014.
Those shares are currently valued at $4.55 million.

Mulally also was awarded options to buy 1.275 million shares of Ford stock at $12.46, which he could exercise over
three years with 33 percent per year.

Ford's CEO options have no immediate value — since Ford's stock closed at $12.09 on Tuesday.

Moby Vic · 08-03-2012, 01:15 PM

Ford is only one more Explorer recall fiasco away from being on the brink again. It's like that for all the manufacturers now.

FTE · 13-03-2012, 01:49 AM

Quote:

Originally Posted by jpd80

They paid him in stock which he is free to sell and get his money, it cost Ford basically nothing to do it...

actually it costs Ford their entire business if their CEO does a bad job.
Any CEO gets shares as incentive to increase the value of the company they run. The better they run it the more the shares are worth. The more the shares are worth the more the CEO is worth.
So its not just a matter of being given shares in a company, you've got to make the right decisions on everything from whats hitting the market today to whats best for the company to survive into the future.

The world today isn't the same as former CEO's who ran these companies. Today the global effects from any economy is almost enough to cripple a car company or any industry, its a cut throat world on a larger scale than any time in history with recession from countries now affecting what happens here which before wouldn't necessarily hurt us before.

Its a job I wouldn't want

**DJM83** · 08-03-2012, 02:04 PM

Quote:

Originally Posted by davway

Disgraceful.

if he wasn't here we may not have Ford's to drive.

chevypower · 08-03-2012, 03:25 PM

Quote:

Originally Posted by davway

Disgraceful.

Yeah how dare someone get rewarded for their good work! If you don't believe in people making money, then don't buy products from companies that try to make profits.

Kryton · 09-03-2012, 12:39 PM

Quote:

Originally Posted by davway

Disgraceful.

Actually, i take that back.
He got paid junk stock and the investment paid off in his favour - good luck to him.

However, if he had have been paid $58m, then that is disgraceful.

jpd80 · 09-03-2012, 12:48 PM

Quote:

Originally Posted by davway

Actually, i take that back.
He got paid junk stock and the investment paid off in his favour - good luck to him.

However, if he had have been paid $58m, then that is disgraceful.

What is disappointing is your continued referral to Ford stock as Junk stock, it's now back at investment grade.

Mulally has been paid every year since he came to Ford and let's not forget that he threw away $14 million
in Boeing stock options when he walked out the door after being passed over three times by lesser skilled
individuals, something that has really put Boeing in the soup with Dreamliner...

Kryton · 09-03-2012, 01:38 PM

Quote:

Originally Posted by jpd80

What is disappointing is your continued referral to Ford stock as Junk stock, it's now back at investment grade.

Whats your problem buddy?
At the time he was given the stock, it WAS junk stock.
Id also like to see you point out my "continued referral" to Ford stock as being junk - Ive mentioned it ONCE and that was in past tense.
Time to dismount your high horse and let others express their own opinions - ones that you may not like or agree with.

jpd80 · 09-03-2012, 02:27 PM

Quote:

Originally Posted by davway

Whats your problem buddy?
At the time he was given the stock, it WAS junk stock.
.

I said disappointing because "Junk StocK" is a term that GM fans like to throw in our faces
and if me saying "disappointing" is being high horsed then I'm riding a Shetland pony....

Paxton · 07-03-2012, 10:31 PM

This man is responsible for saving Ford.

He's worth every penny he's getting, and more.

whynot · 07-03-2012, 10:40 PM

Quote:

Originally Posted by Paxton

This man is responsible for saving Ford.

He's worth every penny he's getting, and more.

Agreed. And unlike General Motors, Ford's financiers are still getting their loans re-payed. They would be more than happy to cough up the stock options.

Wretched · 07-03-2012, 10:39 PM

Good on him.
Deserves it all for bringing together Ford all over the world into One Ford and turning the company around from a basket case to a profitable one.

Cheese3 · 07-03-2012, 11:07 PM

He earnt and worth every bit of that pay check!!! Alot of companys are trying to lure him now!

Moby Vic · 08-03-2012, 03:49 AM

From Jalopnik.com:

Quote:

Ford CEO Alan Mulally is $34.5 million richer thanks to shares granted two years ago vesting this week. Mulally made $26.5 million in 2010, making him the ninth highest-paid CEO in the U.S. last year, according to Associated Press calculations. Although the UAW, predictably, is upset over the Ford CEO's huge package, the automaker says Mulally's pay is fair because it's tied to the shares' success. "Our compensation philosophy is to align the interests of our leadership with those of our shareholders," Ford said in a statement. "Ford's stock was $1.96 a share at the time of the 2009 awards, and is over $12 a share today. That is a more than a 500% increase, which benefits all stakeholders in the Ford turnaround." Here's the math: Mulally was given 4.8 million stock units for his performance in 2009, a pivotal year in Ford's turnaround when it posted its first annual profit since 2005. Ford withheld 1.9 million shares for taxes. The remaining 2.85 million units were converted to shares worth $34.5 million at today's closing stock price of $12.09.

Gobes32 · 08-03-2012, 10:40 AM

He saved Ford from bankruptcy, the man deserves the cash and then more. He would never have received the bonus if he did not acheive all the objects assigned to him.

aussie muscle · 08-03-2012, 11:07 AM

there's always risk with being paid with shares. apparently GM traded a lot of shares during the GFC knowing they were going to be worthless (when old gm closed and the shares went with it).

still, mulally is doing the job he was paid to do, so i guess he earned them.

tex · 08-03-2012, 11:19 AM

Sounds like he won't lose too much sleep at night worrying about finances.

Personally, I don't begrudge any execs for their remuneration, they had to negotiate it afterall, a board had to approve it.

It's not like they awarded it to themselves without prior approval!

Gobes32 · 08-03-2012, 03:27 PM

Between Lewis Booth, Derrick Kuzak and Alan Mulally, the top three, whatever they received, they have earned it.

Moby Vic · 09-03-2012, 02:00 AM

Dealerships are small businesses that employ lots of people. Many dealerships in the US are family owned and some are nearly a century old.

It is not easy to make a profit as a dealer, especially if you're saddled with undesirable product.

To have Ford corporate undercut all those loyal dealerships was a big deal.

If you bought your Ford through a corporate website and had a warranty issue, where would you take it for service? Why, you'd take it to that dealership from which you refused to buy. You likely would have taken delivery of the vehicle from that same dealership.

It was a neat idea, but wasn't practical at the time.

Many dealers offer pricing on their own websites, anyway.

XR6TCraig · 09-03-2012, 10:07 AM

Quote:

Originally Posted by Moby Vic

If you bought your Ford through a corporate website and had a warranty issue, where would you take it for service?

Sounds like the issue I already have. My local dealer will never get my business or their hands on my car for a warranty claim again after their monumental stuff up and lack of motivation to fix the issues that they caused.
If I could buy direct a save a few thousand and recieve the same aftermarket service ( read none) then I wouldbe happy with that.

Moby Vic · 09-03-2012, 11:49 AM

But that's only a single data point.

Anyway, what's Nasser doing these days? Maybe some other manufacturer will hire him and he can implement his brilliant scheme.

Mulally clearly has a greater focus on product than Nasser did. I suppose he does have the "advantage" of heading a corporation that's struggling for survival, though, whereas Nasser was saddled with a profitable company flush with cash that could buy prestigious European marques at will.

jpd80 · 09-03-2012, 02:35 PM

Quote:

Originally Posted by Moby Vic

Anyway, what's Nasser doing these days? Maybe some other manufacturer will hire him and he can implement his brilliant scheme.
.

Jac Nasser is currently CEO of BHP Billiton, probably the world's biggest miming company..

Nasser and Ford were a bad mix,all of that is best left in the past as that Ford company died at the end of 2006
and was reborn in early 2007 as a new invigorated company with a plan and the right people to do it.

Dr Smith · 09-03-2012, 09:11 PM

Quote:

Originally Posted by jpd80

Jac Nasser is currently CEO of BHP Billiton, probably the world's biggest miming company..

Nasser and Ford were a bad mix,all of that is best left in the past as that Ford company died at the end of 2006
and was reborn in early 2007 as a new invigorated company with a plan and the right people to do it.

Jac is actually the Chairman of BHP Billiton.
He struggled with $US9+billion profit for 6 months to Dec 2011, lol