(F) Ford Motor Co. Bankrupcty Play
You can't have a special situation blog without talking about American auto manufacturers, so I thought I'd start with Ford.
Crippling pension & medical obligations, defiant unions, foreign competition, and perhaps just inferior cars have been driving Ford (and GM) stocks down over the past couple of years. However, Ford has started a major restructuring which includes: lowering manufacturing capacity, reducing the workforce and renegotiating health-care costs.
In this time of inflated executive compensation, Ford CEO Bill Ford brought in 40% last year than the previous. This number might be dropping even more:
"Bill Ford said last May that he would take no salary, bonus or other awards until the automaker's automotive operations return to profitability. But he did receive nearly $5 million in restricted stock equivalents under an incentive plan established before he made that commitment. Ford plans to donate that amount to charity, the company said."
Crippling pension & medical obligations, defiant unions, foreign competition, and perhaps just inferior cars have been driving Ford (and GM) stocks down over the past couple of years. However, Ford has started a major restructuring which includes: lowering manufacturing capacity, reducing the workforce and renegotiating health-care costs.
In this time of inflated executive compensation, Ford CEO Bill Ford brought in 40% last year than the previous. This number might be dropping even more:
"Bill Ford said last May that he would take no salary, bonus or other awards until the automaker's automotive operations return to profitability. But he did receive nearly $5 million in restricted stock equivalents under an incentive plan established before he made that commitment. Ford plans to donate that amount to charity, the company said."
posted by spinoff at
1:25 PM
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