Tuesday, July 23, 2019

Ford Motor Co Top-Tier Executives Average Pay Raise Was a Clean, Very Robust 17.0% Per Year During the Past 10 Years (2009-2018). It Appears That Ford and Its Board of Directors Were Into Grade Inflation Given How Ford Has Actually Underperformed in the Past Decade. Grade Inflation of the Performance of Top Level Executives Results in Annual Pay Raise Inequality Expansion.

Detroit, Michigan is the site of the second Democratic 2020 Presidential candidate televised debate to be held on July 30-31, 2019.  The Under 75 Progressive Wing will be led by the energetic Elizabeth Warren, Kamala Harris, Corey Booker and Julian Castro.  The Under 75 More Moderate Wing will be led by Pete Buttigieg, Amy Klobuchar, Beto O'Rourke and Latecomers Michael Bennet and Steven Bullock.

The key issue to Detroit and to Michigan citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of many large Michigan Companies were rewarded with in the past ten years.

The second Michigan Company I am addressing is the Ford Motor Company.

From annual compensation information contained in Company Proxy Statement filings with the SEC, the chart at the very bottom below shows Ford Motor Co's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years. 

Ford's Top-Tier Executive Average Pay Raise of a clean 17.0% per year for the last decade is below GM's somewhat messy 29.5% per year.


My objective is to get a better handle on just why the US and especially Michigan has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages, coupled with the stock price appreciation subsequent to the time the Top-Tier Executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages.


Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

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Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Ford Motor Co
2018
2017
2017
2016
2016
2015
2015
2014
2014
2013
Top-Tier
Total
Total
Total
Total
Total
Total
Total
Total
Total
Total
Executive
Comp
Comp
Comp
Comp
Comp
Comp
Comp
Comp
Comp
Comp
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
James Hackett CEO     17,753     16,732  N/A   N/A 
Robert Shanks CFO       8,420       6,744       6,744       6,293       6,293       5,558       5,558       6,537       6,537       4,090
William Clay Ford Executive Chairman     13,840     15,626     15,626     13,863     13,863     12,861     12,861     15,583     15,583     11,956
James Farley President Global Markets       5,861     13,474     13,474       6,609       6,609       5,805       5,805       4,691       4,691       4,261
Joseph Hinrichs Global Operations       5,815     12,125     12,125       6,724       6,724       6,418       6,418       6,309       6,309       4,410
Mark Fields Retired CEO  N/A   N/A      22,102     18,577     18,577     18,934     18,934     10,171
Alan Mulally Former CEO  N/A   N/A 
 Totals      51,689     64,701     47,969     33,489     55,591     49,219     49,219     52,054     52,054     34,888
Annual % Change vs Prior Year -20.1% 43.2% 12.9% -5.4% 49.2%
5 Year Average Per Year % Change 16.0%
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Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Ford Motor Co
2013
2012
2012
2011
2011
2010
2010
2009
2009
2008
Top-Tier
Total
Total
Total
Total
Total
Total
Total
Total
Total
Total
Executive
Comp
Comp
Comp
Comp
Comp
Comp
Comp
Comp
Comp
Comp
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
$ 000s
Robert Shanks CFO       4,090       5,182  N/A   N/A 
William Clay Ford Executive Chairman     11,956     14,836     14,836     14,458     14,458     26,461     26,461     16,834     16,834              0
James Farley President Global Markets       4,261       4,597  N/A   N/A 
Joseph Hinrichs Global Operations       4,410       4,097       4,097       5,302  N/A   N/A     
Mark Fields CEO     10,171       8,854       8,854       8,840       8,840       8,819       8,819       3,981       3,981       4,647
Alan Mulally Former CEO     23,205     20,956     20,956     29,498     29,498     26,521     26,521     17,917     17,917     16,975
L W K Booth Retired CFO  N/A   N/A        7,732       8,197       8,197       3,826       3,826       5,454
John Fleming Global Mfg & Labor Affairs       5,916       3,852  N/A   N/A 
 Totals      58,093     58,522     48,743     58,098     60,528     69,998     75,914     46,410     42,558     27,076
Annual % Change vs Prior Year -0.7% -16.1% -13.5% 63.6% 57.2%
5 Year Average Per Year % Change 18.1%
10 Year Average Per Year % Change 17.0%