Cars and Drivers
Ford to Cut Staff 10%, but Embattled CEO Fields Will Keep Salary
Published:
Last Updated:
In a situation that happens regularly, Ford Motor Co. (NYSE: F) will cut 10% of its worldwide workforce, but CEO Mark Fields, who caused the company’s problems in the first place, will keep his job and his salary.
According to Reuters, reports of a 10% across the board cut may not be true. The news agency says it will be 10% of the salaried workforce in Asia and North America. At any rate, the cuts will be in the thousands.
CEO Fields made $21.1 million last year and nearly $19 million the two years prior. William Clay Ford, the executive chairman, made $13.9 million. The sums are extraordinary given Ford’s problems.
Over the past two years, Ford’s shares are down 30%. Shares of rival General Motors Co. (NYSE: GM) are off 4% during the same period, and Fiat Chrysler Automobiles N.V. (NYSE: FCAU) shares are up 9%.
Ford has bungled several opportunities, leading to among other things a lack of success in the critical European and Chinese markets. Ford has to thrive in these markets to be a global success, but its market share in both regions is mediocre. Its U.S. business has slipped. Its domestic sales are off 5.1% to 826,981 over the first four months. The figure would be worse if sales of its flagship full-sized pickup F-Series were not up 7.4% to 275,938.
Ford also has been slow into the driverless and electric car businesses. Google and Tesla Inc. (NASDAQ: TSLA) are widely seen as well ahead of Ford. So is GM, which has launched the inexpensive electric car the Chevy Bolt. Several other companies, including BMW and Volvo, are also considered well ahead of Ford.
According to the Detroit Free Press, at Ford’s annual meeting:
Ford assured shareholders that company’s stock price matters both to the Ford family and Ford’s top management but pointed out that Wall Street has historically undervalued automakers, even when they make millions in profits.
That is if the car maker is Ford.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
