The auto bailout may have prevented the “too large to fail” businesses from imploding financially, but that doesn’t mean that their financials are on Easy Street. The Ford Motor Company did better than most auto producers, but not without Executive Chairman Bill Ford imposing a five-year pay freeze upon himself beginning in 2005. He said he’d take no salary starting in 2005, and this would continue until Ford Motors started to turn a more consistent profit. Now the board at Ford has voted to lift the pay freeze, reports Automotive News. Bill Ford’s deferred salary that he will receive dates back to 2008.
Bill Ford will get $ 4.2 million in back pay
Ford made $ 4.8 billion on auto sales over the past 12 months, which made their decision to reinstate Bill Ford’s salary much easier. The $ 4.2 million in back salary Bill Ford will receive goes all the way back to 2008. Mr. Ford may also receive stock possibilities 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. The duo agreed to 30 percent salary cuts in 2009 and 2010 to aid in Ford’s recovery. Bill Ford also sold $ 1 million of his company stock in order to start a scholarship fund for kids of business employees.
In addition, Bill Ford jettisoned approximately $ 28 million in business stock and opportunities purchased in 2004 and 2005. Those sales did not change his family’s overall stake in the business, nevertheless. In total, Bill Ford holds approximately 6.5 million common and Class B shares in the Ford Motor Company.
Further reading
Automotive News
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