Ford chief Alan Mulally awarded $58.3M in company stock

[jpd80]

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]

Disgraceful.

[Paxton]

This man is responsible for saving Ford.

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

[Scott]

Originally Posted by davway

Disgraceful.

I strongly disagree. Why?

[Wretched]

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.

[whynot]

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.

[Cheese3]

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

[jpd80]

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]

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]

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]

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).

[Moby Vic]

From Jalopnik.com:

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]

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]

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]

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!

[jpd80]

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

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]

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

[jpd80]

Well, Toyota survived their Unexplained Acceleration debacle, GM survived bankruptcy
and Ford survived their reformation. All any of them can do is hopefully avoid major events.

[Chopped]

That's alot of money for one person.
Could one person really have saved Ford ?
(surely it took teamwork)

[XWGT]

Originally Posted by Chopped

That's alot of money for one person.
Could one person really have saved Ford ?
(surely it took teamwork)

I'm sure the CFO and a whole line of execs were handsomely rewarded as well, just not in the headlines

[DJM83]

Originally Posted by davway

Disgraceful.

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

[Moby Vic]

Originally Posted by jpd80

Well, Toyota survived their Unexplained Acceleration debacle, GM survived bankruptcy
and Ford survived their reformation. All any of them can do is hopefully avoid major events.

As far as I know, the Explorer debacle remains the costliest automotive recall in history. It cost Ford more than $1B.

The good that came from it was that it got rid of Jac Nasser, who cared about everything but building Ford vehicles, and that it forced Ford to become leaner ahead of the financial crisis that nearly destroyed GM and Chrysler.

[chevypower]

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.

[Gobes32]

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

[jpd80]

Originally Posted by Moby Vic

As far as I know, the Explorer debacle remains the costliest automotive recall in history. It cost Ford more than $1B.

As bad as that looks, PAG's losses cost Ford $12 Billion, and the reformation has cost well over $30 Billion

The good that came from it was that it got rid of Jac Nasser, who cared about everything but building Ford vehicles, and that it forced Ford to become leaner ahead of the financial crisis that nearly destroyed GM and Chrysler.

You couldn't be further wrong.
The Board of Ford agreed with every move Nasser made, right up until he took aim at Firestone for concealing evidence of shoddy tyres.
The family who owns Firestone are good friends of the Ford's and it was major intervention by Bill Ford that stopped everything.

Plenty of execs in Ford lied to Nasser and then to Bill Ford and that's why Ford hired Mulally, to weed that culture out.
Not saying that nasser wan't without serious character flaws but he is headding up BHP Billiton and doing very well indeed.

[Dr Smith]

Originally Posted by jpd80

As bad as that looks, PAG's losses cost Ford $12 Billion, and the reformation has cost well over $30 Billion

You couldn't be further wrong.
The Board of Ford agreed with every move Nasser made, right up until he took aim at Firestone for concealing evidence of shoddy tyres.
The family who owns Firestone are good friends of the Ford's and it was major intervention by Bill Ford that stopped everything.

Plenty of execs in Ford lied to Nasser and then to Bill Ford and that's why Ford hired Mulally, to weed that culture out.
Not saying that nasser wan't without serious character flaws but he is headding up BHP Billiton and doing very well indeed.

Sure Nasser gets a bad wrap sometimes, however running a mining company in this time, or being it's Chairman in the case of Nasser means facing the biggest dilemma of where to spend the cash, lol

[Moby Vic]

Originally Posted by jpd80

As bad as that looks, PAG's losses cost Ford $12 Billion, and the reformation has cost well over $30 Billion

You couldn't be further wrong.
The Board of Ford agreed with every move Nasser made, right up until he took aim at Firestone for concealing evidence of shoddy tyres.
The family who owns Firestone are good friends of the Ford's and it was major intervention by Bill Ford that stopped everything.

Plenty of execs in Ford lied to Nasser and then to Bill Ford and that's why Ford hired Mulally, to weed that culture out.
Not saying that nasser wan't without serious character flaws but he is headding up BHP Billiton and doing very well indeed.

Nasser was the guy who created PAG, at the cost of Lincoln.

Nasser wanted Ford to sell cars directly to consumers over the Internet, at the cost of Ford dealers across the USA.

Nasser complained about seeing too many white men at board meetings.

He cared nothing about product.

[XR6TCraig]

Seeing as I hate dealers and they are more often than not useless, or not willing to help anyhow, why is the idea of selling direct to the public via the internet such a bad idea to you?

[Moby Vic]

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]

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.