If investors needed further proof that Detroit's automakers are on sounder footing, there's this: Ford Motor (F) CEO Alan Mulally (pictured) has been awarded $56.5 million in stock in recognition for the company's stunning turnaround, which resulted in the automaker raking in $6.6 billion last year -- its best performance in more than a decade.

Accompanying the former Boeing executive in the windfall was Executive Chairman Bill Ford, who received $42.4 million worth of shares. Ford paid the unrestricted stock to its top two executives as part of an incentive plan for 2009 and 2010, Bloomberg News reported, citing Securities and Exchange Commission filings.

Mulally's stock award is equal to about $27 for each of the 1.94 million cars the Dearborn, Mich.-based automaker sold in the U.S. last year. Overall, Ford sold 19% more cars in the U.S. during 2010 than in the previous year, although 2009 was one of the worst in recent memory. That sum, of course, doesn't take into account the millions of vehicles Ford sold in overseas markets, including Europe, India, China and Southeast Asia.

Both executives' total compensation for 2010, including salary and benefits, will be published in the company's proxy statement, which is expected to be filed with financial regulators in coming weeks. The automaker withheld some of the stock awards to cover the executives' tax liability, company spokesman John Stoll told Bloomberg. After taxes, Mulally received $33.4 million and Ford got $25.1 million.

"This is an indication of the performance that the company has experienced under Alan Mulally and Bill Ford's leadership," Stoll told the news agency Tuesday. "Ford is committed to aligning executive compensation to the company's performance and long-term shareholder value."

Share Prices Up More Than 1,000%


The automaker has come a long way since Mulally joined its ranks in September 2006. At the time, Ford was bleeding money and reported losses of $12.6 billion for the year. The company would go on to lose billions more during the next two years.

But under Mulally's leadership, the automaker put in place an effective turnaround plan, borrowing more than $23 billion and mortgaging much of its business in the process. Known as "One Ford," the plan sought to focus the company's energy on the core Ford brand. It sold its portfolio of premium European brands, including Volvo and Land Rover, ditched the long-redundant Mercury unit, shuttered plants and slimmed its workforce.

Unlike its domestic rivals, General Motors (GM) and Chrysler Group, Ford didn't seek a government bailout during the financial crisis, which has aided its turnaround. GM and, to a lesser extent, Chrysler, have suffered from image problems since accepting a combined $60 billion -- the bulk of which went to GM -- to aid in their restructuring. GM has acquired the nickname "Government Motors" among detractors of the bailouts.

Ford's stock price also has benefited from the company's resurgence. After falling to a record low of $1.26 per share in November 2008, it rebounded to a high of $18.97 on Jan. 13. The stock has lost a bit of ground since then, however, and was trading Tuesday around $14.50 a share.

In addition to their stock awards, Mulally and Ford were also given stock options. Mulally, 65, received 884,433 stock options, while Ford, 53, got 412,735 options. The executives have until 2021 to exercise the stock options, which have a strike price of $14.76. The pair also received restricted stock units that can be converted into shares in 2013. Mulally received 543,734 restricted stock units, while Ford was awarded 253,742, according to the federal filings.


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scottee

THIS IS JUST WRONG AND THIS IS WHAT THE AMERICAN PEOPLE ARE PISSED ABOUT. only problem is the people think the unions and the government are looking out for them and in reality, no one will look out for you but you.

March 10 2011 at 7:49 AM Report abuse rate up rate down Reply
Good Day Martin!

BETTER LOOK OUT FORD, YOUR SALES MIGHT PLUMMET, IF THIS GETS OUT TO THE FROD CAR BUYERS, THEY DON'T LIKE TO PAY FOR BIG BONUS'S.

March 09 2011 at 12:12 PM Report abuse rate up rate down Reply
Mary Beth

EJWJEEJEJWJJJE3H3HH33HB3H3

March 09 2011 at 6:31 AM Report abuse rate up rate down Reply
jesuaphn

He has done a great job for FORD, and he did not borrow a penny from the government; However, considering the economic status of the nation it is a disgrace that he gets 56.5 million dollars worth of stock. Think about this, he can start selling the stock and bring the price down of the stock. Only speculators who short the stock and him are going to make money. The rest of the investors lose.

March 09 2011 at 6:04 AM Report abuse +2 rate up rate down Reply
2 replies to jesuaphn's comment
jpierce67

I don't know where you got the idea that Ford didn't borrow money from the Fed, Ford, Nissan BMW, all received money. Ford even receive a loan to help sell car for inporting. Google Ford receive government loan and see what pop up.

March 10 2011 at 6:19 PM Report abuse rate up rate down Reply
n590star

He grew up in Lawrence, KS. Midwestern values. No way would he ever even consider what you are suggesting.

June 27 2011 at 5:54 PM Report abuse rate up rate down Reply
whatslh

I like Alan. I think he has done a great job. To me paying someone those sums of money is outrageous and callous to those of us who will be lucky to even have made that kind of money in our whole life. Limits should be made for anybody including CEO's to make up to $5,000,000. Anything over $5,000,000 should be taxed at 95% which would all go to pay down the US debt. Maybe my kids and yours would not be saddled with such a large US debt.

March 09 2011 at 12:32 AM Report abuse +1 rate up rate down Reply
demh8r

Ok hdvh56....keep believing the $14/hr employees are the problem. The fat cats love fools like you who believe the lie compensation like they "earn" is attainable for anyone who works hard enough.

March 08 2011 at 11:09 PM Report abuse +2 rate up rate down Reply
Tom

Congratulations-you earned it! All your stockholders are wealthier today and the average Joe and Jane who own your stock through a mutual fund in their 401k plan or IRA are also wealthier too-they have MORE money because of your sterling performance. And Ford didn't accept a government bailout or any TARP money either? Outstanding. Once again, big congrats on EARNING your performance bonuses and paying both huge state and federal income taxes on your earned income. We appreciate and applaud your splendid private sector performance.

March 08 2011 at 11:06 PM Report abuse +3 rate up rate down Reply
1 reply to Tom's comment
jpierce67

Ford did get government money to help producing high milage and hybrid vehicle tooling

March 08 2011 at 11:43 PM Report abuse rate up rate down Reply
liyingseyh

http://www.sosovogue.com/

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March 08 2011 at 10:35 PM Report abuse rate up rate down Reply
hdvh56

The car companies are in trouble because the union guys are making $14 an hour and not because the execs are making 99 million,right all you anti union trolls?

March 08 2011 at 10:35 PM Report abuse +1 rate up rate down Reply
hdvh56

Its the unions fault!!!!!!!!!!!

March 08 2011 at 10:31 PM Report abuse rate up rate down Reply