WASHINGTON - Ford Motor Co. disclosed Monday that it awarded 18 senior executives stock worth more than $34 million under the company's long-term incentive and retention plans.
In past years, Ford had distributed restricted stock units to executives. The units didn't convert to stock immediately, giving the executives an incentive to stick around and help improve the company's performance so the shares would gain value.
The stock awards outlined Monday in a filing with the U.S. Securities and Exchange Commission are largely for performance in 2008.
Eight of the executives received awards totaling around $3 million or more.
Ford President and CEO Alan Mulally received 136,005 shares worth nearly $2 million.
After the company withheld 55,491 shares for taxes, Mulally received stock worth $1.1 million.
The stock units were awarded in 2009, and vested on Friday, which means the executives now own the shares. When the shares were awarded, Ford stock was worth less than $3 a share; on Monday, it closed at $14.30 on the New York Stock Exchange.
The filings Monday follow Ford's disclosure last week that Mulally received $56.5 million in stock for his 2010 performance, worth about $33 million after taxes.
Mulally defended his compensation Friday, saying it was tied to the automaker's performance.
Ford spokesman John Stoll said Monday the automaker is "committed to aligning executive compensation to the company's performance and long-term shareholder value."
The awards outlined Monday "entirely reflect that philosophy because they are based on the performance of Ford's stock," Stoll said.
Ford's stock price jumped nearly 70 percent in 2010 as Ford recorded $6.6 billion in profit — its largest yearly tally since 1999. Ford's hourly workers are receiving profit sharing checks averaging $5,000.
Aaron Bragman, an auto analyst at IHS Automotive, said the awards were justified. "This is the reward that they earned for taking risks," he said. "There was no guarantee Ford would stay out of bankruptcy or return to profitability. They were getting less than market compensation in terms of cash."
Harley Shaiken, a professor at the University of California, Berkeley, specializing in labor and the global economy, said the bonuses could be an issue in contract talks this summer with the United Auto Workers.
"Ford's performance has been very strong but these kinds of bonuses tend to create resentment at a particularly critical moment," Shaiken said. "Awarding $130 million in bonuses makes it very difficult to ask for restraint by hourly workers."
Other executives also received stock that had converted from previously awarded restricted stock units. They include: John Fleming, Ford's executive vice president of global manufacturing and labor affairs, received about 396,000 shares worth $5.7 million before taxes, and $3.4 million after taxes.
Ford group vice president Jim Farley was awarded 214,957 shares worth nearly $3.1 million. After Ford withheld 87,700 shares for taxes, Farley realized $1.8 million.
Ford quality chief Bennie Fowler received 208,237 shares worth $3 million before taxes, and realized $1.8 million after taxes. J Mays, the company's group vice president of design and chief creative officer, also received about $3 million in stock before taxes, and $1.8 million in stock after taxes were withheld.
Ford Americas President Mark Fields received 46,615 shares of stock worth $670,000. After taxes, Fields received stock worth $400,000. Ford Chief Financial Officer Lewis Booth received 45,499 shares worth $653,000, or $385,000 after taxes.
Ford group vice president for sustainability, environment and safety engineering Sue Cischke received about $3 million in stock and received about $1.9 million after taxes.
Ford group vice president and chief information officer Nick Smither also received about $3 million in stock before taxes and $1.9 million after taxes.
Ford Executive Chairman Bill Ford Jr., who received $42.4 million in stock last week before taxes, did not receive any new award Monday. Ford will disclose total compensation for its senior executives when the company files its annual proxy for 2010.
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