Ford bumps CEO Mulally's stock option grant to $6 million
The Ford board's compensation committee on Tuesday, Feb. 27, decided to increase the value of a Mulally stock option grant to $6 million. When Mulally was hired in September, that planned option grant was described as having a minimum value of $5 million.
Ford revealed the increase in the value of the options in its annual report, or 10K, filing made late today.
"They were pleased with him leading the turnaround effort," spokeswoman Becky Sanch said. "The board chose to recognize the leadership he's demonstrated."
The options, which have a 10-year term, will be granted on Monday, March 5. Mulally can exercise the first third after one year, the second third after two years and the remainder in three years.
The compensation committee on Tuesday also clarified the terms of Mulally's use of company aircraft.
The arrangement now allows Mulally's wife, children and guests to fly on company aircraft for personal reasons at company expense, even if Mulally does not accompany them. The arrangement previously stated that Mulally had to fly with his family and guests.
The change will allow Mulally's family to travel to visit him without him leaving the office, Sanch said. The intent is to keep Mulally focused on work rather than serving as a travel escort.
"He's aware of the public focus on executive aircraft usage," Sanch said. "He's in charge of the company's turnaround, and the use of the company aircraft will be at his discretion."
Mulally's wife still lives in Seattle, where the family lived for the many years Mulally worked at Boeing Co. Mulally has already established a residence in the Dearborn, Mich., area, where he and his wife plan to live, Sanch said.
-- "If they pull a knife, you pull a gun. If they put one of yours in the hospital, you put one of theirs in the morgue." Sean Connery, "The Untouchables"