Ford Motor Co. on Friday successfully tapped COO Jim Farley as its subsequent chief government.

In response to a submitting with the Securities and Alternate Fee, Ford has agreed to award Farley a inventory grant price $2.5 million ought to another person ultimately succeed 64-year-old CEO Jim Hackett. If Farley is obtainable the place of president and CEO and declines, he wouldn't obtain the inventory grant, the submitting stated.

Farley, 57, assumed the COO put up on March 1, a job broadly seen as a stepping stone to the highest position. However the Friday submitting is the primary time Ford has tied monetary incentives to Farley and CEO succession. Ford has revived the COO put up as a part of a sweeping turnaround and energy to spice up working income.

Ford beforehand disclosed with the SEC that Farley's whole compensation as COO will rise to $8.29 million, up almost $2 million from his compensation as president of recent enterprise, expertise and technique on the automaker.

The compensation payouts replicate base wage, inventory...