Late last week there was a big surprise announced by Ford when Joe Hinrichs was ousted and Jim Farley got promoted to chief operating officer. Farley was previously the president of new business, technology, and strategy and was already making a hefty bundle in that position. A recent federal regulatory filing shows that Jim Farley is getting a massive raise to the tune of $1.98 million in additional salary, bonuses, and stock.
The bulk of the increase in his compensation plan is a boost to his annual stock grant. Bloomberg reports that his overall compensation is $8.29 million in his new position. Do the math and you’ll see that Farley was already making millions of dollars per year in his previous position. Along with that big salary comes big expectations with Farley expected help turn around the struggling automaker.
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Jim Farley will step into his new position on March 1 when Joe Hinrichs retires. There has been scuttlebutt that suggests Hinrichs was ousted after the blame was laid at his feet for the failed 2020 Ford Explorer launch. Ford has very high expectations in 2020 with several high-profile new models on the horizon. One of those new models is the Ford Mustang Mach-E electric SUV. Another, and possibly more important, new model for Ford is the return of the iconic Ford Bronco.
Ford also has a smaller Bronco coming that sources tell us will be called the Bronco Sport. Moving into 2021, Ford has a redesigned F-150 pickup that is absolutely critical for the automaker. If Ford misses the mark on any of those high-profile launches it could be disastrous for the company and its stock. Any major failures could also see Farley retiring right behind Hinrichs.
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Source: Bloomberg
Comments
What happened to pay for performance? He’s way over paid before raise just like Hackett!
I agree completely with MS Watchdog. Why this guy is getting a promotion, let alone a Hugh compensation increase, is beyond me. He’s been heavily involved in the decision to eliminate sedans (which I believe will prove disastrous), squandered billions on this self-driving car nonsense and electric cars ( which only eco-wackos want). Not to mention the endless recalls on everything that Ford builds. I suspect the stock will go below $8.00 this month. Yeah, let’s promote this guy. When him and Hackett are shown the door, I hope there is enough market share left to rebuild the Company.
Agree that both Farley and Hackett need to be shown the door and the sooner the better. But Ford has a long history of not being able to launch a new car line any more than they can build a FWD automatic transmission. Ford HAS a process to be followed when a new product is being launched, but too many white shirt types opt to skirt the process to (a) make themselves look good to the even higher ups and (b) even more importantly, meet or come in under the impossibly tight budget limitations the finance people impose. Between this and the frustration, anger and sheer terror imposed by the goons in I.T. and purchasing, it’s a wonder Ford can build any vehicle.
Its always hard to believe that someone in the company can now turn it around. The Explorer mess and every write up only comments are cheap interior with the Korean’s getting praise. 8 dollar stock, production problems, inferior interiors— At least Mr Farley got a Adult Haircut and now combs his hair!!! Looking for “great things, and a new ideas” — where have they been.
Way too much infighting at Ford. Hate to say it but i think Mr Ford might be the problem. Mr Nasser got out of control with his wild spending and expansion but lets face it, he had to answer to someone. Mr Mulally was great and got things on track and he instilled confidence. Mark Fields, his departure was a product of infighting Mark vs Joe vs Jim.. I think he would have worked out just fine but was too worried about who was behind him. It’s a shame, he was obviously very talented. I’ll blame over reaction to Tesla for his fall. Uncle Jim , there’s a winner. He seems to pick and choose who he likes and who he likes to insult… I don’t think i would like to work for him. Is Mr Ford afraid of him, afraid of another CEO being shown the door or simply walking out it? Farley is good but so was Mr Fields…