Tuesday, August 10, 2010

Ford board votes to begin back pay for Bill Ford

Ford board votes to start back pay for Bill Ford

While the vehicle bailout helped the “too big to fail” giants from falling into their graves, their economic futures aren’t yet rosy. The Ford Motor Company has fared moderately well, but the five-year pay freeze chairman Bill Ford voted on himself no doubt helped. Bill Ford said in 2005 that he would take no paycheck until Ford Motors turned up the sales success. Now the board at Ford has voted to lift the pay freeze, reports Automotive News. Bill Ford will receive back salary dating to 2008.

Bill Ford will get $ 4.2 million in back pay

The Ford Motor Company board of directors decided it was time for Bill Ford to get his money, thinking about the automaker reportedly made a $ 4.8 billion automotive profit over the past 12 months. Bill Ford will start receiving $ 4.2 million in deferred salary from 2008 onward. Bill Ford will even be able to take advantage of stock choices and restricted stock.

Bill Ford was chief executive at Ford 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 Ford and Mulally have agreed to 30 percent personal salary cuts for 2009 and 2010 as part of the automaker’s economic recovery. Bill Ford sold personal holdings in business 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. Those sales did not change his family’s overall stake within the company, nevertheless. Presently, Bill Ford maintains 6.5 million shares in common and Class B stock.

Discover more information on this subject

Automotive News

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



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