Ford Motor Co. awarded Chief Executive Officer Alan Mulally $1.95 million in stock one week after granting him $56.5 million in shares, the company said yesterday in a federal filing.
Mulally’s latest award, which came as stock grants that vested March 11, was for his performance in 2008, when the second-largest U.S. automaker had a record $14.8 billion loss. His 2010 salary and benefits will be released in a proxy report in the coming weeks, said John Stoll, a company spokesman.
“Alan Mulally’s leadership has been widely recognized as extraordinary,” Stoll said in an interview yesterday. “His compensation reflects Ford’s goal of retaining a world-class CEO.”
Mulally, who came to Ford from Boeing Co. in 2006, has turned around the automaker by emphasizing quality and expanding its lineup with small cars such as the Fiesta subcompact. Ford earned $9.28 billion in the last two years after $30.1 billion in losses from 2006 through 2008. The shares, which traded as low as $1.01 on Nov. 20, 2008, fell 6 cents to $14.30 yesterday in New York Stock Exchange composite trading.
As a reward for the turnaround, Ford on March 3 paid Mulally unrestricted stock worth $56.5 million and gave Executive Chairman Bill Ford unrestricted shares valued at $42.4 million. Dearborn, Michigan-based Ford withheld some of the stock awards to cover their income taxes. After taxes, Mulally received $33.4 million and Bill Ford got $25.1 million.
Ford also withheld some stock from Mulally’s 2008 award to cover income taxes, leaving him with $1.16 million after taxes.
“Had Ford not achieved such strong results, the value of stock grants would have been much lower or possibly would not have paid out at all,” Stoll said.