Is It Time to Start Thinking About Ford's (F) CEO Succession?
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Price: $12.91 -0.23%
Overall Analyst Rating:
NEUTRAL (
Down)
Dividend Yield: 6.2%
EPS Growth %: -33.3%
Overall Analyst Rating:
NEUTRAL (
Down)Dividend Yield: 6.2%
EPS Growth %: -33.3%
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Ford Motor (NYSE: F) shares are trading a little lower today, which may be due in part to rehashed conversation of CEO succession at the Dearborn, MI-based automaker over the weekend in one local Detroit newspaper.
The Detroit Free Press highlighted the potential succession of CEO Alan Mulally, which may happen before the end of 2011 or potentially within the next few years. Mulally, though 65, hasn't made any formal remarks about stepping down as Chief at Ford, but some speculate as to who will be next in line should something happen.
Recent health scares from Apple's (Nasdaq: AAPL) CEO Steve Jobs and the untimely passing of former McDonald's (NYSE: MCD) CEO Jim Cantalupo back in 2004 were two examples cited. MCD fortunately had the Board together at the time, limiting downside in their shares following a sell-off. Apple's Jobs was rumored to be undergoing another treatment for cancer, but was later photographed at a dinner with President Obama and he recently introduced the iPad 2 to investors and consumers.
Mulally has only been at Ford since 2006, and the term of his contract has no set duration. His hiring was to transform Ford into a profitable company once again, which he has achieved with $9.3 billion in profits over the last two years.
The Freep notes that much of Ford's $51 billion market cap is tied to Mulally's "star power."
Over his tenor, Mulally also has been loading up top-spots at the automaker with executives that many are considered to be capable of leading the company in the future. Potential successors include Ford Americas President Mark Fields, Asia Pacific and Africa President Joe Hinrichs, Group Vice President of Marketing Jim Farley, Vice President of Global Product Development Derrick Kuzak, and Ford Europe CEO Stephen Odell. CFO Lewis Booth and Chairman Bill Ford, Jr., could also take the role in a pinch should the move be warranted.
But no formal plan is in place yet, and investors of public companies have had increased interest in knowing what sort of plan is in place should the unforeseen occur.
For right now though, Mulally is still cranking out 12-hour days for the Blue Oval, and isn't showing any signs of slowing down.
Ford stock is down about 2% today.
The Detroit Free Press highlighted the potential succession of CEO Alan Mulally, which may happen before the end of 2011 or potentially within the next few years. Mulally, though 65, hasn't made any formal remarks about stepping down as Chief at Ford, but some speculate as to who will be next in line should something happen.
Recent health scares from Apple's (Nasdaq: AAPL) CEO Steve Jobs and the untimely passing of former McDonald's (NYSE: MCD) CEO Jim Cantalupo back in 2004 were two examples cited. MCD fortunately had the Board together at the time, limiting downside in their shares following a sell-off. Apple's Jobs was rumored to be undergoing another treatment for cancer, but was later photographed at a dinner with President Obama and he recently introduced the iPad 2 to investors and consumers.
Mulally has only been at Ford since 2006, and the term of his contract has no set duration. His hiring was to transform Ford into a profitable company once again, which he has achieved with $9.3 billion in profits over the last two years.
The Freep notes that much of Ford's $51 billion market cap is tied to Mulally's "star power."
Over his tenor, Mulally also has been loading up top-spots at the automaker with executives that many are considered to be capable of leading the company in the future. Potential successors include Ford Americas President Mark Fields, Asia Pacific and Africa President Joe Hinrichs, Group Vice President of Marketing Jim Farley, Vice President of Global Product Development Derrick Kuzak, and Ford Europe CEO Stephen Odell. CFO Lewis Booth and Chairman Bill Ford, Jr., could also take the role in a pinch should the move be warranted.
But no formal plan is in place yet, and investors of public companies have had increased interest in knowing what sort of plan is in place should the unforeseen occur.
For right now though, Mulally is still cranking out 12-hour days for the Blue Oval, and isn't showing any signs of slowing down.
Ford stock is down about 2% today.
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