Ford Stock Worth Nearly $100M Awarded To Ford Top Executives

By on Mar 10, 2011 in Automobile, Business Comments
Ford Stock for Alan Mulally
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Ford stock estimated to be close to $100 million were reportedly awarded to Ford Motor Co.‘s  CEO Alan Mulally and Executive Chairman Bill Ford Jr. on Monday, March 7, 2011, the company disclosed in its regulatory filing.

The top two executives received the Ford stock for their 2009 to 2010 performance. During this period, Ford‘s profits and stock prices have surged significantly  after suffering heavy financial losses in 2006. In 2009, Ford Motor Co. accumulated an income of $2.7 billion and continued gains of $6.6 billion or a 20 percent sales increase in 2010.

Ford Jr., former CEO of Ford Motor Co., was responsible for hiring Mulally from Boeing Co. in 2006, wherein the Dearborn, Michigan company lost $12.6 billion during that period.

When Mulally handled Ford Motor Co, he mortgaged the company assets to raise $23 billion and avoid filing for bankruptcy. He also sold five of the company’s seven brands and implemented drastic cost cutting measures by closing or selling a quarter of their manufacturing plants and cut manpower by over one third.

The introduction of new vehicles that include Ford Fusion sedan and Ford Edge has gradually put the company out of the red. Other factors that contributed to Ford Motor‘s rebound include improved reliability and its shift from trucks and SUV’s to smaller cars.

Based on submitted documents to the US Securities and Exchange Commision (SEC), Mulally received Ford stock valued around $56.5 million before taxes, while Ford Jr. was given $42.4 million worth of stock.

On Tuesday, March 9, 2011, Ford stock price gained 3 percent.

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