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Ford Chairman may finally get paid

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Ford Chairman may finally get paid

Ford Chairman may finally get paid

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When Ford Executive Chairman Bill Ford Jr. said he would work for free until the company was profitable, he really meant it. In fact, since 2005 he has foregone his salary and bonus payments, which are estimated to be worth somewhere around $25 - $33 million. Bill Jr. could soon be eligible to actually get paid as the Blue Oval is expected to become profitable by the end of next year.

Bill Jr. is still insisting that no payments be made to him until Ford's board can say that the ailing automaker has accomplished its turnaround goal of getting back to profitability. While it’s uncertain whether Ford will in fact make a profit this year, it’s expected that by 2009 the company should be able to legitimately pay Bill Jr. a salary, Reuters reports.

It looks as though Ford CEO Alan Mulally will be able to bring the company back to profitability following the deal he cut with the United Auto Workers Union to cut health care costs and allow companies to hire lower-cost workers. Since signing the deal, Ford has lost a quarter of its North American employees in the bid to return to profitability but still posted a 2.7 billion dollar loss last year. Nevertheless this figure is much more palatable than the 12.6 billion dollars lost in 2006 and indicates that at last Ford is on track to reach profitability.
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Comments (4)
  1. it indicates that ford is on track to post a 8 billion dollar profit not next year but THIS year.

    do i think it will happen? hardly.

    but i certainly hope that ford can turn some kind of massive profit (i remember an annual profit in the tens of billions back in the late 90s), something to fill the coffers, something to give them a boat load of money to invest into new projects. i havent heard anything about ford trying to put together a killer plug-in hybrid. hopefully they can get some cashflow going. buy back the mortgages on all their holdings, invest in some "pay me quick" type projects, and keep the money coming.. to invest in future long term projects.
     
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  2. I like thier cash flow statements and their P/E ratio. I think they are an undevalued stock right now, so here's hoping...
     
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  3. Jr. forgoing his salary is not that large of a burden. Honestly for a person who is worth hundreds of millions of dollars to accept no pay for a few years...well thats a drop in the bucket. His father is worth 1.4 billion...they own tons of property and a sports franchise to boot.

    This was not a humanitarian gesture, it was PR pure and simple. And if it helps save Ford Automotive, it will be the cheapest PR the company has ever paid for. The easiest way to think about this is that the 25-33 million salary loss, im betting is nothing in comparison to his losses through stock depreciation. If the company turns around (25-33 million buys you a whole bunch of engineers, designers and lawyers) then it will be the best 25-33 Jr ever spent.
     
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  4. I trully hope Ford makes the turnaround, FoMoCo is the only domestic maker that tries to make high quality cars. imo the recalls are just hex put on by the japs.
     
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