Ford Motor Chief Operating Officer Jim Farley is set to receive millions in common shares of the automaker if he is not selected as its next CEO, according to a company filing submitted to the SEC on Friday.
Farley, who is considered to be the heir apparent to CEO and President Jim Hackett, would be awarded a stock grant valued at $2.5 million in unrestricted shares of Ford common stock if not chosen as Hackett's successor, according to the filing.
Based on Friday's closing price of Ford shares $5.63, up 5.2%, Farley would receive more than 444,000 shares of the company. In the past year, the automaker's stock has declined 34%, including 39.5% in 2020.
If Farley is offered the position and he declines the role, the grant will not be made, according to the filing.
Such an incentive is likely a move by the company to retain Farley for the long-term regardless of if he's leading the company or not.
Ford, in an emailed to CNBC, said: "What you're asking about is a long-term incentive for a highly accomplished, highly regarded executive who's playing a major role in transforming Ford into a leader in the emerging era of Smart Vehicles for a Smart World."
The filing follows Farley starting as COO on March 1, weeks after being named to the position in connection to the unexpected retirement of Joe Hinrichs, who led automotive operations for the automaker.
Last month, Hackett said he planned "on staying in this job and working with Jim [Farley] tightly to now realize the value that we've been promising." Hackett did not put a timeframe on how long he plans to stay at Ford, however the company is in the middle of an $11 billion restructuring plan through the early-2020s, which he spearheaded.
