exv10wqw4



 




Exhibit 10-Q-4



Performance Stock Rights (PSRs)
Description



for 2005-2007 Performance Period




Executive Compensation &
Benefits




Issued: March 11, 2005



What are PSRs?


     
PSRs give you the opportunity to earn a specified
number of shares of Ford common stock to be issued following the
end of the performance period, pending the Company’s
performance on the metrics applicable to the grant. It is
different from a stock option grant that gives you the right to
purchase shares of Ford stock at a specified price during a
certain time period.




Who is eligible to receive PSRs and when are
they awarded?


     
LL2 and above employees are eligible to receive
PSR grants in March of each year. The three-year performance
period begins in January of the year of grant and ends in
December three years later. For example, the performance period
for the March 2005 grant is from January 2005 through December
2007.



     
Final awards are paid following the end of the
performance period in shares of Ford Common Stock, after
withholding shares to cover taxes.



     
Initial PSR grants and final awards are subject
to approval of the Compensation Committee.




Will I receive dividends on my PSR
grant?


     
During the performance period, you will receive
cash dividend equivalent payments that match the dividends paid
to Ford shareholders based on 100% of the payout level for the
performance stock rights granted to you. These payments will be
made quarterly by Payroll as soon as practicable after the
dividend payment date.




How are the final awards calculated?


     
Following the end of the three-year period,
performance on the metrics is evaluated against the initial
targets, and it is determined whether a final award will be
made. Payouts can be zero or range from 10% to 150% of the
initial grant amount, depending on Company performance on the
metrics.




How does the plan work?


     
At the beginning of each performance period,
management recommends a PSR grant amount based on your expected
future contributions to Ford’s success. Following the end
of the three-year performance period, Ford’s performance to
the plan metrics is evaluated to determine the level of final
award, if any.



     
Each metric is weighted toward the total final
award determination. Metrics for the Performance Stock Rights
covering the 2005 – 2007 Performance Period include
Shareholder Return, Total Cost Performance, Global Market Share,
High Time in Service Improvement and Launch Metrics in the
period.



     
For example, performance results can be zero or
range from 50% to 150%. Performance that does not reach at least
the 50% payout level threshold will generate zero toward the
total. Therefore, if all of the metrics failed to meet the
minimum payout threshold of 50%, the final award would be zero.
If four of the metrics failed to meet the minimum, but one
metric met the 50% threshold, the final award payout would be
10% of the initial grant assuming each metric is weighted 20%.








 



     
PSRs are subject to the terms and conditions of
the Company’s 1998 Long-Term Incentive Plan.




What happens to my grant if I leave the
Company before the 3-year PSR



performance period is over?



     
If you leave the Company before the 3-year
performance period is over, you will be eligible to receive a
pro-rated award. Final awards are determined at the discretion
of the Compensation Committee of the Board of Directors.