Ford awards Mulally option to purchase 5 million shares

FoMoCo CEO Alan Mulally was awarded stock options for 5 million shares last week, reports Automotive News. However, Mulally will not be able to take advantage of the options until Ford’s stock price substantially improves.

Ford reported the round of options to the Securities and Exchange Commission on Friday but said that it won’t report the calculated future value until it files its statement on executive compensation.

Spokesman Mark Truby said that the potential value of those options will be less than the $7.5 million given to Mulally in 2008 which was for 3.5 million shares at a price of $6.14. The sticker price of the 2009 award is substantially less at $1.96.

After the specified waiting period, Mulally can college the difference if Ford’s shares rise beyond that price. According to Automotive News, the stock awards from last year are worth nothing unless Ford’s share price recovers to more than $6.14.

– By: Omar Rana