Ford CEO Mulally receives 2009 incentive compensation - $58.3 million in stock

Ford Motor

Chief Executive Officer Alan Mulally will receive $58.3 million in stock this year as the 2.9 million shares of stock he was given as part of his 2009 compensation incentive plan, which have increased their value six-fold, become his. The stock was valued at $5.9 million when Mulally met most of the 2009 incentive plan goals, according to filings yesterday with the U.S. Securities and Exchange Commission. Ford keep 1.97 million shares for tax reasons, giving Mulally $34.5 million after taxes. Mulally's salary and benefits will be revealed in a proxy report next month. In 2010 he earned $26.5 million according to the Associated Press, making him their 9th highest paid CEO. The methodology includes salary, perks, bonuses, interest rates on pay set aside and company estimates for the value of stock options and stock awards granted. Dearborn, Michigan, where Ford is based, had a median household income of $47,990 for 2006 to 2010 according to the 2010 census. Last year Mulally's stock bonuses of more than $50 million were described as “morally wrong” by Bob King, the United Auto Workers president during wage negotiations, as some workers were being paid less than $15 an hour, about half of what veteran UAW workers earned. The final contract had a better signing bonus than those of General Motors

or Chrysler without raising base pay. "Our compensation philosophy is to align the interests of our leadership with those of our shareholders," Ford spokesman Todd Nissen told Bloomberg Monday. "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." Ford, the second-largest U.S. automaker, earned $29.5 billion in the last three years after reporting $30.1 billion in losses from 2006 to 2008. Ford stock was trading for less than $2 at the beginning of 2009. Yesterday the stock closed at $12.09 after reaching a peak of nearly $19.00 in early 2011. Mulally has been credited with saving Ford after being hired in 2006 and mortgaging most of the company's assets to avoid bankruptcy and taking government aid, which General Motors and Chrysler were forced to take in 2009. General Motors IPO-ed in November 2010 in what was at the time the largest IPO in U.S. history, generating $20.1 billion. The shares were worth $33.00, General Motors closed at $24.58 yesterday. The world's largest automaker is still about one-third government owned after receiving a $50 billion bailout in 2009. Chrysler, which is jointly owned by Fiat and the UAW's retiree health care trust, may IPO sooner than Chief Executive Officer Sergio Marchionne has implied in the past, he said yesterday at the Geneva Auto Show in Switzerland. Fiat has struggled with fewer car sales in the debt-shaken European Union. Mulally will also receive 1.28 million stock options to buy at $12.46, which he can begin to exercise next year, and more than 376,000 restricted stock units which can be converted in 2014. Executive Chairman Bill Ford, who was CEO before Mulally, received almost 0.6 million stock options with the same strike price and exercise date. He also received about 175,500 restricted stock units which can be converted in 2014.