International mining and natural resources company Cliffs Natural Resources Inc. said Tuesday that a special performance grant of 67,009 shares of company stock worth $3 million has been approved for the company's chairman, president and CEO.
Under the terms of the grant, Joseph Carrabba can earn the shares between now and Dec. 31, 2013, if the company's total value increases by 50 percent or more for a period of 60 consecutive days over the total value of the last 60 trading days of 2009. Total value is defined as market capitalization plus total debt minus cash and equivalents.
If the target is reached, the grant would be eligible to be paid at the end of the term, assuming Carrabba still works for the company. If the target is not reached or if Carrabba leaves the company voluntarily, then there will be no payout.
If that goal is reached, the compensation and organization committee of the board of directors will determine the payout. The target payout is $2 million up to a maximum of $3 million.
Cliffs Natural shares fell 23 cents to close earlier at $45.49.