Ford Awards Several Top Executives One-Time Retention Bonuses -- Update
May 19 2017 - 7:06PM
Dow Jones News
By Christina Rogers
Ford Motor Co. has awarded one-time retention bonuses to four
top executives, a move that comes as the No. 2 U.S. auto maker
battles a languishing stock price, profit pressure and cooling
sales in its core U.S. market.
The restricted stock bonuses pay out at the end of the
decade.
Jim Farley, Ford's head of Europe, and Product Chief Raj Nair
were each granted long-term stock incentives worth nearly $5
million at Friday's closing price earlier this week, according to
documents filed with the Securities and Exchange Commission.
Ford's head of purchasing, Hau Thai-Tang, also received
long-term incentives worth nearly $4 million, and Marcy Klevorn,
the company's chief information officer, was awarded $2 million in
restricted stock units, the filings show.
Ford didn't immediately return a request for comment.
The retention awards -- to be paid in 2020 -- come as the
company's stock has tumbled nearly 40% since Chief Executive Mark
Fields took over in mid-2014. Shares closed at $10.87 Friday.
Earlier this week, Ford outlined new cost-cutting measures,
saying it will reduce its salaried workforce in key regions by 10%
through buyout offers to employees in the U.S., China and other
affected regions.
The push is expected to result in 1,400 job cuts in North
America and Asia by September and will contribute to a $3 billion
cost-reduction goal for 2017.
Mr. Fields is under pressure by shareholders and board directors
to provide more clarity to investors about the auto maker's
strategy at a time when profit growth has stalled amid falling
sales volumes in the U.S. and China -- two of the world's largest
auto markets.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
May 19, 2017 18:51 ET (22:51 GMT)
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