The shares, should Mulally decide to buy, would be offered at $1.96 each. The shares are already valued at $2.19 each, but Mulally wouldn't be able to cash out his stock options like a traditional share. He would be eligible to cash in one third of the stocks after one year, two thirds after two years, and all the stocks after three. If Mulally makes good on his plan to turn the company around, the stock value could skyrocket in the meantime. That would help Mulally make up some of his 30% pay cut in 2009.
[Source: Automotive News, sub. req'd | Photo by ROBYN BECK/AFP/Getty]