Ford Motor Co. on Friday effectively tapped COO Jim Farley as its next chief executive.
According to a filing with the Securities and Exchange Commission, Ford has agreed to award Farley a stock grant worth $2.5 million should someone else eventually succeed 64-year-old CEO Jim Hackett. If Farley is offered the position of president and CEO and declines, he would not receive the stock grant, the filing said.
Farley, 57, assumed the COO post on March 1, a job widely viewed as a stepping stone to the top role. But the Friday filing is the first time Ford has tied financial incentives to Farley and CEO succession. Ford has revived the COO post as part of a sweeping turnaround and effort to boost operating profits.
Ford previously disclosed with the SEC that Farley’s total compensation as COO will rise to $8.29 million, up nearly $2 million from his compensation as president of new business, technology and strategy at the automaker.
The compensation payouts reflect base salary, stock…