Ford CEO Jim Hackett received $17.36 million in compensation in 2019

[Harley Lover]

Not sure Ford got its money's worth:  https://www.detroitnews.com/story/business/autos/ford/2020/04/03/ford-ceo-jim-hackett-executives-2019-compensation/5117544002/

[ausrutherford]

Literally 0.01% of Ford's revenue last year.

[AGR]

2 hours ago, Harley Lover said:

Not sure Ford got its money's worth:  https://www.detroitnews.com/story/business/autos/ford/2020/04/03/ford-ceo-jim-hackett-executives-2019-compensation/5117544002/

 

I'm sure that they're not.

[Bob Rosadini]

On a positive side,  he no longer uses the term "fitness" in every presentation.?  And it was nice that Bill Ford and the Board gave him a pass on the Explorer launch.  But I guess if he had micro managed the situation and pushed Joe H ..."are you SURE you can strip out CAP, put it back together, and build a completely new  platform, N/S power train without skipping a beat",  he would have been criticized for that.

 

Then again my bet is Mulally would have been on top of it.  That is what experience in a complex manufacturing environment breeds in a guy IMO

[snooter]

Corporate coward comes to mind when i think of hackett.....he should have been involved with chiraq...that failure rested squarely with him

[paintguy]

Mulally railed against the Ford mentality of "report green status" at all costs. I wonder how launches would go if there was not backsliding to the old mentality. If you look at Boeing and 737 MAX, looks like they contracted this disease after ingesting McDonnell Douglas. 

[Trevor12515]

Not surprised at all..

[jpd80]

18 minutes ago, paintguy said:

Mulally railed against the Ford mentality of "report green status" at all costs. I wonder how launches would go if there was not backsliding to the old mentality. If you look at Boeing and 737 MAX, looks like they contracted this disease after ingesting McDonnell Douglas. 

Mulally also presided over bad launches.

 

Boeing bought McDonald Douglas out back in 1996, I don't think Boeing can lay the blame for 737Max on them.

[Bob Rosadini]

19 hours ago, jpd80 said:

Mulally also presided over bad launches.

 

Boeing bought McDonald Douglas out back in 1996, I don't think Boeing can lay the blame for 737Max on them.

JP- At Ford and anything as critical and extensive as the Explorer?  I watched some of the videos of the CAP conversion and I could only imagine  all of the things that could go wrong between the computer control of all the robots to say nothing of the mechanics of the robots themselve starting with the installation.

And as for the 737 Max issue I'm sure it was on the dwg. board when Mulally was in command, but seems like it was more of a culture issue was it not?

[akirby]

It sounds like the CAP launch problems had more to do with people than technology.

[paintguy]

22 hours ago, jpd80 said:

Mulally also presided over bad launches.

 

Boeing bought McDonald Douglas out back in 1996, I don't think Boeing can lay the blame for 737Max on them.

Actually, I am referring to management practices. McDonnell Douglas management style essentially took over Boeing. Expedience over sound practice. Unwillingness to face problems.  Laying the blame for Explorer launch on on-site personnel (hourly and or salary) alone is not accurate. Too many half baked plans allowed to proceed and any who suggested otherwise got treated worse than Captain Crozier.

[jpd80]

41 minutes ago, paintguy said:

Actually, I am referring to management practices. McDonnell Douglas management style essentially took over Boeing. Expedience over sound practice. Unwillingness to face problems.  Laying the blame for Explorer launch on on-site personnel (hourly and or salary) alone is not accurate. Too many half baked plans allowed to proceed and any who suggested otherwise got treated worse than Captain Crozier.

Joe Hinrichs presided over a lot of Ford’s bad launches but I think the problem was much deeper than just design, manufacturing or supplier issues, there’s an opportunity for a perfect storm when those three things align and that’s where everyone needs to do their jobs properly.

 

 

[akirby]

1 hour ago, paintguy said:

Laying the blame for Explorer launch on on-site personnel (hourly and or salary) alone is not accurate. Too many half baked plans allowed to proceed and any who suggested otherwise got treated worse than Captain Crozier.

I wasn’t blaming only the CAP folks.  

[Bob Rosadini]

But back to the thread.  Is everyone giving Hackett a pass?-- and oh yes, "good job Jim, here is your check."  When I read  some  history Hinrichs  was a hero.  Likewise  Farley was the best CAR marketer in the world.  Hinrichs gets the blame and is  gone,  Ford does NOTHING to hype/improve cars, and Farley is  the new savior.  

Outsiders like me-and old ones at that- probably don't have the full perspective but I  will say watching both Hackett and Farley giving their joint presentations at the Explorer launch I  said  to  myself..."these guys are the most dynamic people at Ford?""  We are in trouble.

[dlghtjr90]

30 minutes ago, Bob Rosadini said:

But back to the thread.  Is everyone giving Hackett a pass?-- and oh yes, "good job Jim, here is your check."  When I read  some  history Hinrichs  was a hero.  Likewise  Farley was the best CAR marketer in the world.  Hinrichs gets the blame and is  gone,  Ford does NOTHING to hype/improve cars, and Farley is  the new savior.  

Outsiders like me-and old ones at that- probably don't have the full perspective but I  will say watching both Hackett and Farley giving their joint presentations at the Explorer launch I  said  to  myself..."these guys are the most dynamic people at Ford?""  We are in trouble.

 

No pass at all. Considering Ford was already in bad shape before the virus, but now he has excuses why things are going bad thanks to the virus.

I'm sure there were plenty of troubling signs for the Explorer launch, and it is likely that Hackett's response was somewhere on the line of 'just do it' and go through 'some issues' and scathing reports.

I'm happy to see the Explorer sales being #1 again for Q1 2020, but all the quality problems will bite Ford back with warranty costs.

Overall, just the fact that his press conference is sleep-inducing every time with nothing interesting coming out of his words, I think he simply got no charisma to be a CEO.

 

Edited April 6, 2020 by dlghtjr90

[theoldwizard]

On 4/4/2020 at 10:40 PM, jpd80 said:

Mulally also presided over bad launches.

I worked in Ford Engineering for 31 years.

 

I have NEVER heard of a factory staying in operation while vehicle were shipped to another plant to be repaired.   INSANITY !

[ausrutherford]

1 hour ago, Bob Rosadini said:

But back to the thread.  Is everyone giving Hackett a pass?-- and oh yes, "good job Jim, here is your check."  When I read  some  history Hinrichs  was a hero.  Likewise  Farley was the best CAR marketer in the world.  Hinrichs gets the blame and is  gone,  Ford does NOTHING to hype/improve cars, and Farley is  the new savior.  

Outsiders like me-and old ones at that- probably don't have the full perspective but I  will say watching both Hackett and Farley giving their joint presentations at the Explorer launch I  said  to  myself..."these guys are the most dynamic people at Ford?""  We are in trouble.

Farley's speech pattern is much like his cousin's.

 

It is much better for quick jokes, just not long speeches.

 

He might not be winning awards in oratory, but that doesn't mean he is bad beyond the scenes. 

[rperez817]

30 minutes ago, ausrutherford said:

Farley's speech pattern is much like his cousin's.

 

 

[akirby]

1 hour ago, theoldwizard said:

I worked in Ford Engineering for 31 years.

 

I have NEVER heard of a factory staying in operation while vehicle were shipped to another plant to be repaired.   INSANITY !

Pretty sure they did the same thing for the 2013 Fusion/MKZ launch.  Shipping vehicles from Hermosillo to Flat Rock to replace headlamps and other things.

[jasonj80]

1 hour ago, theoldwizard said:

I worked in Ford Engineering for 31 years.

 

I have NEVER heard of a factory staying in operation while vehicle were shipped to another plant to be repaired.   INSANITY !

 Expedition and Navigators were sent all over back in the late 90's with no seats in them during the Lear strike so they could be installed later (You got a milk crate to move them) , 2013 Escapes showed up and were fixed under tents, 2004 F-150 were shipped to lots to have transmissions re-flashed. It isn't just a Ford thing, Nissan, GM and Chrysler have all done it as well. 

  

[Fordowner]

From the article

$17.75 million the chief executive was paid in 2018. While Hackett's base salary was steady at $1.8 million and his stock awards were up 3.5% at $13.19 million, incentive bonuses fell 32% to $1.75 million.

Executive Chairman Bill Ford Jr. made $16.76 million in 2019. 

Jim Farley, Ford's  made a total of $8.36 million in 2019.

Joe Hinrichs, received $11.02 million in total compensation in 2019

Bob Shanks,  $8.32 million in total compensation in 2019

Tim Stone, Ford's chief financial officer, received $8.32 million

 

Yes capitalism is good and much of this money is via stock grants, but the Executive Suite sure are making a lot of money.   I wonder what stock price was used to value the grants - Also does anyone know if these stock grants are taxable in the year they are granted? 

[akirby]

Regular stock options don't count until they’re exercised.  

[jpd80]

34 minutes ago, akirby said:

Regular stock options don't count until they’re exercised.  

And that's the thing most wage earners don't understand, the stock value dropping so much

probably means he can't sell them until they reach a certain value. Mulally was in this situation.

[jpd80]

2 hours ago, Fordowner said:

From the article

$17.75 million the chief executive was paid in 2018. While Hackett's base salary was steady at $1.8 million and his stock awards were up 3.5% at $13.19 million, incentive bonuses fell 32% to $1.75 million.

Executive Chairman Bill Ford Jr. made $16.76 million in 2019. 

Jim Farley, Ford's  made a total of $8.36 million in 2019.

Joe Hinrichs, received $11.02 million in total compensation in 2019

Bob Shanks,  $8.32 million in total compensation in 2019

Tim Stone, Ford's chief financial officer, received $8.32 million

 

Yes capitalism is good and much of this money is via stock grants, but the Executive Suite sure are making a lot of money.   I wonder what stock price was used to value the grants - Also does anyone know if these stock grants are taxable in the year they are granted? 

Ford buys the stock on behalf of their executives but there's a stock price threshold

which prevents sale until the stock is above a predetermined value.

 

It's like saying to someone, two thirds of your wage will be witheld until our stock is above say, $8.00

[akirby]

2 hours ago, jpd80 said:

And that's the thing most wage earners don't understand, the stock value dropping so much

probably means he can't sell them until they reach a certain value. Mulally was in this situation.

 

Well you can exercise them but it'd be stupid if the current price was less than the option price.

 

There are several different types of stock awards.   Options give you the option of buying stock at (hopefully) a reduced price in the future.  If the stock goes up you get the difference.

Then you have restricted stock which you may own but you can't sell for a certain number of years or comes with other restrictions.   And there are "virtual" shares that have their own rules for distribution and vesting.  But they're all designed to incentivize managers to raise the stock price which can sometimes lead to stupid short-sighted decisions.