Friday, August 13, 2010

Ford board votes to start back pay for Bill Ford

Ford Executive Chairman Bill Ford draws paycheck again

The auto bailout may have prevented the “too large to fail” corporations from imploding financially, but that does not mean that their financials are on Easy Street. The Ford Motor Company has fared reasonably well, but the five-year pay freeze chairman Bill Ford voted on himself no doubt helped. He said he’d take no salary beginning in 2005, and this would continue until Ford Motors started to turn a more consistent profit. According to Automotive News, the pay freeze has now been lifted. Bill Ford will receive back salary dating to 2008.

Bill Ford will collected $ 4.2 million from his company

Ford made $ 4.8 billion on automotive sales over the past 12 months, which made their decision to reinstate Bill Ford’s salary much easier. Bill Ford’s $ 4.2 million deferred dates back to 2008. The compensation will consist of opportunities (some of which are at the moment exercisable) and restricted stock.

Ford was CEO from 2001 to 2006

Bill Ford moved to the board room in 2006, opening the way for Alan Mulally to take over as CEO. Both men agreed to a 30 percent salary cut in 2009 and 2010. Bill Ford sold personal holdings in company stock for a $ 1 million scholarship fund he created in 2005 for the kids of company employees.

Bill Ford also sold $ 28 million in company stock in his efforts to help Ford Motors. Bill Ford’s stock sales did not affect the Ford family’s overall holdings of “Class B voting shares,” which according to Automotive News give the family “a 40 percent voting interest within the company”. In total, Bill Ford holds approximately 6.5 million common and Class B shares within the Ford Motor Company.

Additional reading

Automotive News

autonews.com/apps/pbcs.dll/article?AID=/20100806/OEM02/100809870/1254



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