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Ford’s Turnaround: CEO awarded $34.5 million of Shares (F)

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FORDFord’s (NYSE: F) CEO Alan Mulally was awarded with $ 34.5 million worth shares for his prominent role in spectacular turnaround of the company. From the verge of bankruptcy during the financial crisis, Ford Company’s valuation has increased 6 fold under Mulally’s leadership. The Company revealed about this award in its regulatory filing on Tuesday.

According to documents filed with the U.S. Securities and Exchange Commission, Mulally received 2.9 million shares for his performance in 2009. The amount excludes shares withheld by Ford to pay taxes


While the value of those shares worth $5.6 million in 2009, on Tuesday’s close the same share were valued at $ 34.5 billion.

Ford spokesman Jay Cooney said “Our compensation philosophy is to align the interests of our leadership with those of our shareholders.” “To do this, we put the vast majority of their compensation at risk through performance-based grants”, added Cooney.

Mulally’s compensation emerged as a very contentious issue during contract talks with the United Auto Workers last year.  Last year, Bob King, the union’s president, described Mulally’s $26.5 million pay package for 2010 as “morally wrong” even as some workers were being paid about $15 an hour.

Accordingly Ford workers approved a contract that did not provide an increase in base pay but included signing bonuses that were bigger than the packages offered to General Motors Co or Chrysler Group LLC workers.

Mulally surpassed practically all of his performance targets in 2009, when U.S. auto sales plunged to their lowest in nearly three decades and GM and Chrysler filed for bankruptcy.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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