By on March 26, 2020

Ford badge emblem logo

While Ford Motor Co. plans to reopen several factories by early April, it’s not doing much of anything at present. That’s a standard problem among domestic brands with the coronavirus afoot, and two of them — Ford and General Motors — are coming off sizable restructuring efforts that included staffing reductions in the thousands. Additional cutbacks aren’t desirable; not with everyone watching how these companies handle the outbreak.

As it secures extra spending power from credit lines, Ford knows the steep financial cost of having the majority of its workforce stuck at home (to say nothing of its customers) will be steep. A plan is now afoot to keep jobs secure.

With plants idle, the company has shown its usefulness by pivoting towards the production of medical supplies, including ventilators, with partners General Electric and 3M. A recent filing with the Securities and Exchange Commission, however, reveals Ford’s top-level executives are deferring their salaries to help the business hold on to a little more cash during this rough patch.

The document, first shared by Automotive News, stipulates that a percentage of most executive officers’ base salary will be deferred for at least five months. The accumulated deferred salary amounts will be paid after the Company has repaid at least $7 billion of its debt. Chairman Bill Ford will see 100 percent of his pay pushed back (don’t worry, he’s very rich) while other executives see half their pay delayed.

That includes CEO Jim Hackett, who issued a letter to Ford employees explaining that the firm does not want to cut staff unless it has to. He said the automaker will need all hands on deck after the virus recedes to help make up lost production time. Unspecified “tougher actions” may be necessary if the industrial shutdown takes longer than presumed, he added. For now, Hackett says Ford just wants to ease the company’s burden from the top down — noting that around 300 executives would see salary deferments of between 25 and 50 percent, starting in May. Ford is also freezing hiring for all non-critical positions, delaying merit-based salary increases, and suspending overtime.

Not wanting to ignore health concerns, Hackett said Ford employees that cannot work from home due to the nature of their work could see their payment and schedules tailored. Some may even be offered voluntary sabbaticals. Minimizing the spread of COVID-19 is essential, as no factory wants to be shut down a second time due to a surprise outbreak. Ford said it will continue offering employees infected with the virus paid time off to cover the mandatory 14-day quarantine period.

[Image: Ford Motor Co.]

 

Get the latest TTAC e-Newsletter!

Recommended

8 Comments on “Ford Defers Payment for Top Executives to Cope With Coronavirus...”


  • avatar
    chuckrs

    “With plants idle, the company has shown its usefulness by pivoting towards the production of medical supplies, including ventilators, with partners General Electric and 3M.”

    Unless they can produce more respiratory therapists along with the ventilators, how exactly are the units going to be used? Respiratory therapists usually have either a 2 yr AS degree or a 4 yr BS degree, the latter providing knowledge on elder and infant care and more. Oh, and licensure by our ever-vigilant, speedy and responsive governments is also required. It all takes time. We need to determine what is realistic to implement to blunt the next emergent bio threat. And then get on it. Meanwhile, get busy on PPE equipment, like 3M is doing already.

    • 0 avatar
      Scoutdude

      Actually what Ford is doing is working with 3M to make ventilation systems for health care workers, face masks being fed air through a 3M HEPA filter by a 12v power tool battery and a F-150 ventilated seat blower assembly. This gives health care workers a full face shield and a supply of filtered air. They are undergoing testing at an area hospital.

    • 0 avatar
      Art Vandelay

      It looks like the Army ispreparing to recall recently retired health care professionals not already working in such rolls so there is that. There is a lot of expertise out there among medics from 20+ years of warfare.

      I got my email yesterday but as I am not a medical type mine was worded “If you may have interest in coming back for this, let us know.” My friend retired as a medic and he got a “If you are currently working in a hospital it is vital that you notify the Army” type email.

      These are retirees…There is also the Individual Ready Reserves to pull from. Won’t fill all the need, but will help.

    • 0 avatar

      For B&B no good deed is good enough especially if it is Ford. Or GM.

  • avatar
    Michael S6

    Deferred ? given Ford’s abysmal pre epidemic performance they should be taking a pay cut.

  • avatar
    ToolGuy

    “noting that around 300 executives would see salary deferments of between 25 and 50 percent”

    This could be a hit to Lincoln. What’s the hot vehicle for executive family members these days?

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • conundrum: “Mazda, Mitsubishi, Nissan, Subaru and Toyota have all enacted factory suspensions in Japan.”...
  • donatolla: I think this is nearly all right. It’s just the 10 million in sales. I also don’t know how JD...
  • 210delray: Yes, mine was definitely the 49-state version, originally purchased in PA and then by me in VA. IIRC, it...
  • JimC2: @210delray, I think the 107hp B21F was the 49 state version, but I don’t remember what years it was...
  • SCE to AUX: I’m not optimistic. What I meant was this: the banks should be denying loans for people with bad...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Timothy Cain
  • Matthew Guy
  • Ronnie Schreiber
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth