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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

The fair value of vested RSUs and RSSs as well as the compensation cost for the years ended December 31 were as follows (in millions):

__________

(a) Net of tax benefit of $31 million, $74 million, and $113 million in 2020, 2021, and 2022, respectively.

Inputs and assumptions used to calculate the fair value at grant date through a Monte Carlo simulation were as follows:


	2020			2021			2022
Fair value per stock award	$	7.21		$	13.45		$	18.10
Grant date stock price	7.08			11.93			16.85
Assumptions:
Ford’s stock price expected volatility (a)	25.4		%	39.9		%	44.8		%
Expected average volatility of peer companies (a)	26.4			39.6			39.6
Risk-free interest rate	0.68			0.32			1.62

__________(a)Expected volatility based on three years of daily closing share price changes ending on the grant date.

During 2022, activity for RSUs and RSSs was as follows (in millions, except for weighted-average fair value):


	Shares	Weighted- Average Fair Value
Outstanding, beginning of year	62.5	$	10.31
Granted (a)	35.9	15.63
Vested (a)	(25.6)	9.84
Forfeited	(8.9)	12.94
Outstanding, end of year (b)	63.9	12.90

__________

(a)Includes shares awarded to non-employee directors.

(b)Excludes 1,047,856 non-employee director shares that were vested but unissued at December 31, 2022.

Activity related to stock options for 2022 was as follows:


	Shares (millions)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (millions)
Outstanding, beginning of period	11.9	$	11.15
Granted	—	—
Exercised (a)	(1.8)	12.35
Forfeited (including expirations)	—	—
Outstanding, end of period	10.1	10.84
Exercisable, end of period	7.9	12.10		3.1	$	13.4
Options expected to vest	2.2	6.40		7.6	11.7

__________

(a)Exercised at option prices ranging from $6.96 to $15.37 during 2022.