What are the key terms of Greg C. Smith's retirement?

Greg C. Smith is retiring as Vice Chairman effective March 1, 2006. He will receive retirement benefits equivalent to his Vice Chairman pension level, along with post-retirement benefits such as health care and life insurance. He is also entitled to two executive vehicles and a performance-based Restricted Stock Equivalent award for his 2005 performance.

What is the nature of the consulting agreement with Mr. Smith?

Ford has entered into a consulting agreement with Mr. Smith from March 1, 2006, to November 30, 2006. He will serve as a consultant on special assignments to the Chairman and CEO. This role will involve assisting with company matters, and he will be compensated with a fee of $225,000, paid quarterly, and reimbursed for authorized business expenses.

What are the obligations for Mr. Smith under these agreements?

Under the separation waiver agreement, Mr. Smith must agree not to engage in competitive activities, maintain confidentiality regarding company matters, refrain from inimical conduct towards Ford, and assist the company in litigation. Under the consulting agreement, he is expected to provide advisory services and maintain confidentiality.

What resources will Mr. Smith have access to during his consulting period?

During his consulting tenure, Mr. Smith will be provided with an office and computer support when in Dearborn. He will also receive travel support services for aircraft travel arrangements, a laptop computer with peripherals, software, and communication services (email, internet, phone) for business use.

FORD MOTOR CO 8-K: Material Agreements

Summary

Ford Motor Company (F) filed an 8-K on February 9, 2006, reporting on the retirement of Vice Chairman Greg C. Smith, effective March 1, 2006. The filing details the terms of his separation agreement and a subsequent consulting agreement designed to ensure a smooth transition of his responsibilities. Investors should note the specific retirement benefits and post-retirement provisions Mr. Smith will receive, which are consistent with his executive status. The consulting agreement, spanning from March 1, 2006, to November 30, 2006, will allow Mr. Smith to provide special assignment consulting to the Chairman and CEO. This arrangement also includes a specified consulting fee and reimbursement for business expenses, alongside continued access to certain company resources like office space and IT support for his advisory role. The agreement also outlines non-compete and confidentiality clauses, which are standard for executive separations.

Key Highlights

1Retirement of Vice Chairman Greg C. Smith effective March 1, 2006.
2Mr. Smith to receive retirement benefits under the Select Retirement Plan at the Vice Chairman pension level.
3Eligibility for post-retirement benefits including health care and life insurance.
4Entitlement to two executive vehicles under the Executive Evaluation Vehicle Program.
5Agreement includes a performance-based Restricted Stock Equivalent award for 2005 performance.
6A consulting agreement is in place from March 1, 2006, to November 30, 2006, for special assignments to the CEO.
7Consulting fee of $225,000 for the term, paid quarterly in advance, with expense reimbursement.

FORD MOTOR CO 8-K Report, Material Agreement (Feb 10, 2006)

Summary

Key Highlights

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