While the auto bailout helped the “too big to fail” giants from falling into their graves, their financial futures are not yet rosy. 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 starting in 2005, and this would continue until Ford Motors began to turn a more consistent profit. As Automotive News reports, that time has come – the pay freeze has been lifted. Bill Ford will receive back salary dating to 2008 thanks to the high profits Ford has pulled in during the last year.
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, considering that the automaker reportedly made a $ 4.8 billion auto profit over the past 12 months. Bill Ford’s $ 4.2 million in deferred salary dates back to 2008. On top of his salary, Ford will also receive stock options and restricted Ford stock.
Ford was CEO from 2001 to 2006
By 2006, Alan Mulally was ready to take over while Bill Ford moved to the board room. Both men agreed to a 30 percent salary cut in 2009 and 2010. Bill Ford even sold off personal stock in the amount of $1 million to start a scholarship fund to aid employees in sending their children to college.
In addition to those actions, Bill Ford exchanged $ 28 million in stock and options bought before he froze his salary. Those sales did not change his family’s overall stake in the company, however. Currently, Bill Ford maintains 6.5 million shares in common and Class B stock in the Ford Motor Company, which give him 40 percent voting interest.
Automotive News: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100806/OEM02/100809870/1254
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