According to filings with the U.S. Securities and Exchange Commission, this top executive award is part of an incentive plan that’s tied to Ford’s 2009 performance. Mulally hit nearly all of his performance targets that year.
Ford Spokesman Todd Nissen explains, “Our compensation philosophy is to align the interests of our leadership with those of our shareholders. 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 500 percent increase, which benefits all stakeholders in the Ford turnaround.”
During UAW negotiations last year, Mulally’s compensation package had gone under scrutiny when Bob King, the union president, judged Mulally’s $26.5 million pay package as “morally wrong” when some Ford workers received a more modest wage of $15 an hour. However, the talks settled when Ford workers received contracts with signing bonuses higher than what GM or Chrysler offered.
From 2006 through 2008, Ford suffered $30.1 billion in losses. Yet despite Ford shares trading as low as $1.01 in November 2008, Ford opted not to go down the path of a federal bailout. Under Mulally’s leadership, Ford rebounded to earn $29.5 billion in the past three years.
In 2010, Mulally’s compensation increased by 48 percent to $26.5 million and last year, Ford awarded Alan Mulally with $56.6 million in stock. A proxy report will reveal Mulally’s compensation for 2011, including salary and benefits. No doubt, he’s making money like a boss!