Since Henry Clay Ford Jr. became CEO of Ford (NYSE: F) in 2001, billions of dollars in shareholder value have evaporated in the face of huge losses.To his, and the compensation committee's credit, Mr. Ford agreed on May 11th of 2005, to "forego any new compensation (including salary, bonus, or other awards) until such time as the Committee and Mr. Ford determine that the Company's Automotive sector has achieved sustainable profitability."
Ford then lost $12 billion in 2006 alone, and then another $2.6 billion in 2007. Now, the company is backtracking on its decision not to pay Mr. Ford until the company had achieved "sustainable profitability." According to a new agreement between the two parties filed as an exhibit to the latest 10-K, the company has "now agreed that Mr. Ford would continue to forego new compensation (including salary, bonus or other awards) until such time as the Committee determines that the Company's global Automotive sector has achieved full-year profitability, excluding special items. It was further agreed that the compensation Mr. Ford would have received begining in 2008 and future years but for the agreement to forego new compensation will be earned and paid when the Committee determines that the Company's global Automotive sector has achieved full-year profitability, excluding special items."
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