The automotive bailout may have prevented the “too large to fail” businesses from imploding financially, but that does not mean that their financials are on Easy Street. The Ford Motor Company did better than most automakers, but not without Executive Chairman Bill Ford imposing a five-year pay freeze upon himself beginning in 2005. Bill Ford said in 2005 that he would take no paycheck until Ford Motors turned up the sales success. As Automotive News reports, that time has come – the pay freeze has been lifted. That involves deferred salary compensation for Bill Ford dating back to 2008.
Bill Ford received $ 4.2 million in deferred salary
Ford made $ 4.8 billion on automobile sales over the past 12 months, which made their decision to reinstate Bill Ford’s salary much easier. Bill Ford will start receiving $ 4.2 million in deferred salary from 2008 onward. Bill Ford may also be able to take advantage of stock possibilities and restricted stock.
Ford was CEO from 2001 to 2006
By 2006, Alan Mulally was ready to take over when Bill Ford moved to the board room. 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 children of business employees.
Bill Ford also sold $ 28 million in business 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
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