Tuesday, June 06, 2017

How do big corporations stay in business with such stupid mismanagement? The Ford stock tanked 40%, so the CEO resigns, and gets a $57 million dollar golden parachute.

From CBS news:

As part of this week’s resignation, Mark Fields is expected to receive over $57 million in compensation, about half of that in unvested stock awards. The balance includes $17.5 million in retirement benefits, and over $10 million in stock options and bonuses.

Fields, 56, tendered his resignation after the Ford’s stock dropped 40 percent on his watch and the board lost confidence in his ability to manage the company through a rapidly changing industry on the decline.


Fields joined Ford in 1989 and progressed through a number of leadership positions in the United States, South America, Asia and Europe. Throughout his career, he has managed a series of turnarounds in many of Ford’s businesses around the world, most notably as president of The Americas, where he led a transformation of the company’s North America operations.

Fields formerly served as chief operating officer, Ford Motor Company, a position to which he was named in December 2012. In this role, and as CEO, he was responsible for overseeing Ford’s fastest global manufacturing expansion in 50 years, and managing the most aggressive global product introduction schedule in the company’s history. Prior to this, Fields served as executive vice president, Ford Motor Company. He was named president, The Americas, in October 2005.

Fields also formerly served as executive vice president, Ford of Europe and Premier Automotive Group, where he led all activities for Ford’s premium vehicle business group, and for Ford brand vehicles manufactured and sold in Europe. Prior to this, Fields was chairman and chief executive officer, Premier Automotive Group.

From 2000 to 2002, he was president and chief executive officer, Mazda Motor Corporation, leading the company through a significant transformation.


During Mr. Fields’s three-year tenure — a period when Ford’s shares dropped 40 percent — he came under fire from investors and Ford’s board for failing to expand the company’s core auto business and for lagging in developing the high-tech cars of the future, as self driving cars are the focus of Google, GM, and Tesla... and Ford.

Mr. Fields was also at the forefront of an abortive plan to build a $1.6 billion assembly plant in Mexico for small cars, sales stalled and President Trump’s election brought pressure on Ford to make more vehicles in the United States.

Plus, Ford safety recalls have raised red flags about its overall vehicle quality. Then a deep decline in the sale of small and midsize cars, as Ford won't compete against Nissan and Toyota with it's historic ability to make a cheap car that buyers demand (Model T and Mustang to name only 2)

Ford’s car sales are down 25 percent this year and it is making little, if any, money on the cars it does sell. Yet, it won't risk a perfect 2 door car and cut all competitions legs out with a new car under 14 thou that college students could afford, fast food employees could afford, and high schoolers could get started on without bankrupting parents.

History is full of such cars, the Model T, the Mini, the Mustang, the VW Bug, etc etc.

Profit in the 2017 first quarter dropped more than 30 percent from a year earlier


When was the last time Ford did anything edgy? What was the last risky, bold, or pioneering vehicle from Ford? The T Bird? The Mustang? or the GT (revised GT 40) which costs about 4 times as much as a Mustang, and was built to compete with Ferrari, Mercedes, and other billionaire toys.

Compare that to Dodge with their steady stream of bold choices.... the Magnum station wagon, the PT Cruiser, the Prowler, the Viper... and that's just in the past 20 years


  1. A product is not being sold for what is worth, but rather for what one gan get for it. Same thing with CEO wages & whatever perks are part of their contracts. In 1965 the average CEO pay was 20 times that of your average working stiff, and 35 years later the ratio was 376:1. Today it is about 300:1. Somehow I doubt that their work performance improved by a factor of 15 to 19....

    If I remember correctly, greed is one of the seven deadly sins.

    1. Those perks and contracts are what I'm ranting about. They are too much, and bankrupting a failing company that is already down 40%. The company, and board of directors, and stockholders should look at this golden parachute and state "No More" If Ford is to survive the asskicking in the market from all the competition, they have to get smarter. Henry would never let this shit happen