Bill Ford Stays True to His No-Pay Pledge on Some Level

Robert Farago
by Robert Farago
bill ford stays true to his no pay pledge on some level

After yesterday's post on Bill Ford's compensation package, I had a little chinwag with FoMoCo PR Supremo Oscar Suris. Suris explained that his boss– the automaker's Executive Chairman and former CEO– has, indeed, "modified" his May 2005 pledge. (Billy swore on a stack of dry cleaning bills that he wouldn't take a plug nickel from his family namesake until the company was profitable for a full financial year.) The new deal is this: from 2008, Ford will "postpone" Billy's annual compensation until Ford is profitable. In other words, if and when Ford gets back in black, cha-CHING! All the money from '08 forward comes due. How much? Suris wouldn't say. "The Committee felt this was a fair and reasonable way for Bill Ford to stay true to his pledge on some level." Yes, well, keep in mind that Ford is no longer making dividend payments; the Ford family's auto-related cash flow has stopped. As to what Bill Ford has done to aid the "company's progress in restructuring its troubled North American operations," he hired Alan Mullaly. What do you want, blood?

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  • Jkross22 Jkross22 on Feb 29, 2008

    I don't see any problem with this.

  • Mel23 Mel23 on Feb 29, 2008

    "jkross22 : I don’t see any problem with this." Nor do I. If he ever sees any money, it'll be a trifle compared to what Ford will have accomplished.

  • Robert Farago Robert Farago on Feb 29, 2008

    mel23 :

    “jkross22 : I don’t see any problem with this.” Nor do I. If he ever sees any money, it’ll be a trifle compared to what Ford will have accomplished.

    By "Ford" do you mean the company? What will Bill Ford have done personally to bring Ford back tp profit? Will his contribution to Ford's turnaround be worth $25m plus per year? That's more than Alan Mulally will make.

    Remember: Bill Ford has stock in the company. Lots and lots of stock. If/when Ford returns to profitability, the company will resume paying dividends and he will make millions and millions IN ADDITION to these payments.

  • Landcrusher Landcrusher on Feb 29, 2008

    RF, If you want to argue he is overpaid, I will agree. I thought we were talking about there being some problem with his promise of not getting paid until the company is profitable. While I agree there may be some flip flopping, I am happy to see that he is at least betting his paycheck on the fact that they will one day be profitable again. The fact that he has so much stock is also a good thing. All corporate leaders should be so invested.