Shareholder dissidence mars Ford AGM May 17, 2006
The chairman and CEO of Ford Motor Company, Bill Ford, has reiterated his pledge not to accept a salary or bonus until the company’s operations return to profitability. Speaking at the automaker’s annual meeting, however, it became apparent that Mr Ford’s promises have failed to satisfy every shareholder.
Reports emerging from Detroit said that a total of eight shareholder proposals opposed by Ford were voted down at the annual meeting, but two initiatives aimed at curbing the influence of the Ford family in the management of the company drew about one-in-five votes cast.
Moreover, a proposal to require that Ford separate its chairman and chief executive positions, which are both now held by Bill Ford, drew almost 19% of shareholder votes cast.
Under pressure from key stockholders to take steps to improve the efficiency of Ford's vehicle line-up, the great-grandson of Henry Ford said the iconic carmaker was considering launching a plug-in hybrid, a potential industry first.
Ford is struggling in North America, its largest market, where it lost $1.6 billion in 2005 and another $457 million in the first quarter. It has announced plans to shut 14 plants and cut 34,000 jobs.
“Mr Ford is a failure,” Sam Joanette told reporters. The Miami Beach investor, who said he had lost about $1 million in Ford stock since 1999, spoke in favor of requiring Mr Ford to step down. “Mr Ford knows he is not qualified, that he is in over his head.”
Mr Ford did not respond to the criticism, instead telling shareholders that management understood that the market was shifting rapidly because of higher oil prices. “We are working very hard on this,” he said. “We agree gas prices are high and oil is not going to be any more plentiful or easier to find in the future.”
- Posted in : Ford,Uncategorized
- Author : arnold
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