8-KLeadership ChangesRegulation FDExhibits & Filings

FORD MOTOR CO 8-K Report, Executive Changes (Mar 26, 2020)

Filed March 26, 2020For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company (F) has filed an 8-K report on March 26, 2020, detailing significant compensation adjustments for its executive officers, effective May 1, 2020. These measures involve deferring a portion of base salaries for at least five months, with payments contingent upon the company repaying at least $7 billion in Automotive debt. This strategic move signals a proactive approach by Ford to manage its financial position during a period of economic uncertainty. The deferral percentages vary by executive role, with the Executive Chairman deferring 100% of his base salary, while the President and CEO, COO, and CFO will defer 50%. Notably, Executive Chairman William Clay Ford, Jr. will continue to accrue retirement benefits as if his salary were paid, mitigating the impact on his long-term compensation. These actions are intended to demonstrate solidarity and financial prudence at the highest levels of the company.

Key Highlights

  • 1Executive compensation adjustments to take effect on May 1, 2020.
  • 2A significant portion of executive base salaries will be deferred for a minimum of five months.
  • 3Deferred salary payments are contingent on Ford repaying at least $7 billion of its Automotive debt.
  • 4Executive Chairman to defer 100% of base salary.
  • 5President and CEO, COO, and CFO to defer 50% of base salary.
  • 6Executive Chairman will continue to accrue retirement benefits despite salary deferral.

Frequently Asked Questions

These changes are likely a response to prevailing economic conditions and are designed to demonstrate financial discipline and shared sacrifice among the company's top leadership, while also potentially conserving cash.

The deferred salaries will be paid after Ford has repaid at least $7 billion of its Automotive debt. The deferral period is for at least five months.

No, William Clay Ford, Jr. will continue to accrue credited and contributory service under applicable non-qualified plans, ensuring he receives the same retirement benefit amounts as if his salary had not been deferred.

The filing indicates that the salary deferrals will be for at least five months, and payments are contingent on debt repayment, suggesting these are temporary measures implemented in response to specific financial circumstances.