What is the main change regarding Mark Fields' compensation?

The primary change is that Mark Fields will no longer use company aircraft for personal travel. Ford will now pay for his first-class commercial airfare for personal trips to and from his home in Florida.

Does this change represent a cost savings for Ford?

The filing doesn't explicitly state it as a cost savings. It appears to be a reallocation of costs. While the direct expense of operating company aircraft for personal use is removed, Ford will now incur costs for commercial airfare. The company will also continue to provide tax relief on imputed income, suggesting that the overall financial impact is managed.

Why is Ford paying for Mr. Fields' travel to Florida?

The filing states this is for personal travel to and from his home in Florida. This is part of his executive compensation package, which is being adjusted to change the method of providing this travel benefit.

What is 'imputed income' in this context?

Imputed income refers to the value of personal benefits provided by an employer that are considered taxable income to the employee, even though they are not paid directly in cash. In this case, the personal use of company aircraft had an associated imputed income, and Ford will continue to offer tax relief related to that, even after the change in travel method.

FORD MOTOR CO 8-K: Leadership Changes

Summary

Ford Motor Company (F) filed an 8-K on February 8, 2007, reporting a change in the compensation arrangement for Mark Fields, Executive Vice President and President of The Americas. Effective February 7, 2007, Mr. Fields will cease using company aircraft for personal travel. Instead, Ford will cover the costs of his personal travel via first-class commercial airfare to and from his home in Florida. This change primarily impacts the perquisites and imputed income associated with Mr. Fields' executive compensation. While the direct personal use of company aircraft is being eliminated, Ford will continue to provide tax relief for the imputed income previously related to this benefit. Investors should note this adjustment as it signifies a shift in executive perks, though the financial impact on the company appears to be a reallocation of costs rather than a significant new expense.

Key Highlights

1Mark Fields, EVP and President of The Americas, will no longer use company aircraft for personal travel.
2Ford will cover the costs of Mr. Fields' personal travel via first-class commercial airfare.
3The arrangement is related to personal travel to and from his home in Florida.
4The company will continue to provide tax relief for imputed income associated with this arrangement.
5The change in compensation arrangement was approved by the Compensation Committee of the Board of Directors.
6The effective date of this change is February 7, 2007.

FORD MOTOR CO 8-K Report, Executive Changes (Feb 9, 2007)

Summary

Key Highlights

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