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    Billford has doubled Ford’s stake and is accumulating more control over the company

    Next Ford CEO Jim Farley (left) and Ford Executive Chairman Bill Ford Jr. pose on the 2021 F-150 during the September 17, 2020 event at the company’s pickup-producing Michigan plant.

    Michael Wayland | CNBC

    Detroit – Ford motor Chairman Billford has gradually accumulated shares and control of the automaker founded by his great-grandfather in 1903.

    Not like Elon Musk And another CEO who recently monetized some of the company’s stock due to soaring prices, Ford has doubled his company of the same name in the last decade.

    The 64-year-old is the company’s largest individual shareholder with 2.3 million shares of Ford’s common stock. More importantly, he is also the largest holder of Class B shares in the automaker, which has the super-voting rights that allowed the Ford family to maintain control of the company. Class B shares make up 2% of Ford’s outstanding shares, but dominate 40% of voting rights.

    Billford directly owns 16.1 million Class B shares, or 23%, and is only available to families. According to FactSet, this is four times the 4 million he owned in 2012, or 5.7%.

    “I think it’s really important that the family’s legacy lasts. It gives us a face and perhaps humanity that many other companies don’t have.”

    from Satya Nadella and Microsoft To Jeff Bezos When Musk, CEOs, founders and other corporate insiders are cashing stocks at the fastest pace ever. The 2021 stock will be $ 69 billion. Because the looming tax increases and soaring stock prices have urged many to benefit.

    Ford, which increased its stake through his work as chairman of the board, said he is holding shares to take over Farley’s stake because of his “tremendous confidence” in the company’s management, led by CEO Jim Farley. .. Ford + Turnaround Plan Focuses on electric cars and connected cars. Billford received a total of $ 16 million in compensation from Ford in 2020. It is a combination of profit, cash and stock incentives.

    Ford last month acquired 412,500 additional Class B shares held in a family trust. The move happened about a week after he exercised stock options to acquire nearly two million shares of common stock in the company, some of which were scheduled to expire.

    Instead of monetizing the $ 18 million in revenue it would have earned by exercising the option as most executives do, it will have $ 20.5 million in cash and a tax on profits to hold shares. I paid.

    “We feel we are in a very good position to provide excellent shareholder interests, and I wanted to make up the majority,” Ford told CNBC. “Since the scaling of the Model T, I think there are many opportunities to create maximum value for shareholders.”

    EV

    Unlike his predecessor, Farley has earned investor confidence since taking over the steering. October 2020. Since then, automakers’ share has skyrocketed by about 270%, with market value on Thursday surpassing $ 100 billion for the first time. 2020 marked Ford’s first year since 2001 Shares exceeded $ 20 per share.

    The stock closed at $ 25.02 per share on Thursday, with a market value of $ 9.99 billion.Ford is now more valuable than its Crosstown rivals General Motors, This is worth about $ 90 billion.

    Under Farley’s Ford + plan, the company is working hard on EVs such as the Mustang Mach E, the all-electric Ford F-150, and connectivity services to generate recurring revenue. The company expects an adjusted rate of return of 8% in 2023 before deducting interest and taxes — as soon as you can Many analysts are looking forward to it.

    “Both order banks, Mach-E and Lightning, overwhelmed us,” Ford said. “We’re on this journey of electrification, but it’s not the only one. It’s all about connecting with our customers and developing around electrification.”

    Family share

    Ford directly owns approximately 20.3 million shares, including limited, common and class B shares. Holding that could exclude some trusts was worth more than $ 500 million as of Thursday’s closing price.

    There are 71 million Class B shares worth about $ 1.8 billion owned by descendants of the company’s founder Henry Ford. Voting rights for the Ford family will decline when Class B shares fall below approximately 60.8 million shares.

    Some have criticized the dual-sharing system for unfairly allowing families to maintain control of automakers. Ford has repeatedly defended the dual-share structure by allowing automakers to focus on the longer term rather than another “nameless, faceless company.”

    Billford has doubled Ford’s stake and is accumulating more control over the company

    Source link Billford has doubled Ford’s stake and is accumulating more control over the company

    The post Billford has doubled Ford’s stake and is accumulating more control over the company appeared first on Eminetra.

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