Why is Tim Stone leaving Ford and what are the terms of his departure?

Tim Stone is resigning to pursue a new opportunity. His departure is effective October 15, 2020. He will receive a pro-rated annual incentive award, retain specific tranches of restricted stock units vesting in 2021, and may be eligible for a discretionary award, provided he signs a separation agreement including waivers, non-compete, and cooperation clauses.

What is John T. Lawler's background and experience at Ford?

John T. Lawler has a long tenure at Ford. Most recently, he served as CEO of Ford Autonomous Vehicles and VP of Mobility Partnerships. Prior to that, he was VP of Strategy and also held roles as VP and Corporate Controller and CFO of Global Markets, and President of Ford China.

How will John T. Lawler's compensation change in his new role?

Mr. Lawler's annualized base salary will increase from $620,000 to $1,000,000. His target for the 2020 Annual Incentive Compensation Plan will increase from $520,000 to $671,250, pro-rated for the portion of the year he serves as CFO.

What are the implications of Tim Stone forfeiting certain stock awards?

Tim Stone will forfeit the third tranche of his 2019 award, the second and third tranches of his 2020 grant, and his 2020 performance-based award. This forfeiture is part of the agreement, as the company benefits from retaining him for transition and securing restrictive covenants in exchange for his retention of other specified awards.

FORD MOTOR CO 8-K: Leadership Changes & Regulation FD

Summary

This 8-K filing from Ford Motor Company announces a significant change in its executive leadership, specifically the appointment of John T. Lawler as the new Vice President and Chief Financial Officer (CFO), effective October 1, 2020. Mr. Lawler brings extensive experience within Ford, having previously held roles such as CEO of Ford Autonomous Vehicles and Vice President of Strategy. His appointment comes as the current CFO, Tim Stone, resigns to pursue other opportunities, with his departure set for October 15, 2020. The filing also details compensatory arrangements for both executives. Mr. Lawler will see an increase in his annualized base salary and target annual incentive compensation. Mr. Stone will receive a pro-rated incentive award, retain certain restricted stock units, and be eligible for a discretionary award, contingent upon his cooperation in the transition and the execution of a separation agreement that includes various restrictive covenants beneficial to the company. The company has also furnished the related news release as an exhibit.

Key Highlights

1John T. Lawler appointed as the new Vice President, Chief Financial Officer (CFO) effective October 1, 2020.
2Tim Stone resigns as CFO, effective October 15, 2020, to pursue a new opportunity.
3Mr. Lawler's compensation includes an increased base salary to $1,000,000 and a pro-rated annual incentive target of $671,250.
4Mr. Stone will receive a pro-rated annual incentive award based on performance and time worked.
5Mr. Stone will retain certain restricted stock units scheduled to vest in April 2021 and March 2021.
6Mr. Stone's retention of awards is contingent on signing a Separation and Waiver Agreement with non-compete, non-disclosure, and non-solicitation clauses.
7Ford has furnished a related news release dated October 1, 2020, as an exhibit to the filing.

FORD MOTOR CO 8-K Report, Executive Changes (Oct 1, 2020)

Summary

Key Highlights

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