Bill Ford is doubling down on Ford stock and gaining more control over the company

Incoming Ford CEO Jim Farley, left, and Ford Executive Chairman Bill Ford Jr. are pictured with a 2021 F-150 at an event at the company’s Michigan plant on September 17, 2020, where the pickup truck is built.

Michael Whelan | NBC Finance

Detroit– Ford Chairman Bill Ford, whose great-grandfather founded the automaker in 1903, has been slowly accumulating more shares and control.

unlike Elon Musk And other chief executives who have recently cashed in some of their company’s stock amid a surge in share prices, Ford has been doubling down on his namesake company over the past decade.

The 64-year-old is the company’s largest individual shareholder, owning 2.3 million shares of Ford common stock. What’s more, he’s also the largest holder of the automaker’s Class B shares, which hold the supervoting power that allows the Ford family to retain control of the company. While Class B shares make up 2% of Ford’s outstanding shares, they control 40% of voting power.

Bill Ford directly owns 16.1 million shares or 23% of the Class B shares, which are reserved for family members. That’s four times the roughly 4 million or 5.7 percent he owned in 2012, according to FactSet.

“I think the continuation of the family legacy is very important. It gives us a lot of face and maybe humanity that other companies don’t have.”

from Satya Nadella exist Microsoft arrive Jeff Bezos and Musk, CEOs, founders and other company insiders have been cashing out their shares at the fastest rate on record $69 billion in equities in 2021, The looming tax hike and soaring stock prices encouraged many to take profits.

Ford, which increased his stake through his job as chairman of the board, said he held his stake because he had “a lot of confidence in the company’s management team, led by CEO Jim Farley. “Fulfilling Farley’s promise. Ford+ Turnaround Plan Focus on electric and connected cars. Bill Ford received $16 million in total compensation from Ford in 2020, including benefits, cash and equity awards.

Ford last month acquired 412,500 additional Class B shares held by the family trust. The move comes about a week after he acquired nearly 2 million shares of the company’s common stock by exercising stock options, some of which will expire.

Instead of cashing out of the $18 million in gains from exercising options, as most executives did, Ford paid $20.5 million in cash plus income taxes to hold the stock.

“I just feel like we’re well-positioned to deliver excellent returns to our shareholders, and I want to be a big part of that,” Ford told CNBC. “I think we’ve had an opportunity in many ways since the Model T scaled up. Create maximum value for shareholders.”

electric car

Unlike his predecessors, Farley has won investor confidence since taking the helm. October 2020. Shares of the automaker have surged about 270% since then, with its market value surpassing $100 billion for the first time on Thursday. 2020 is Ford’s first year since 2001 Shares have crossed $20 per share.

The stock closed at $25.02 a share on Thursday, giving the company a market value of $99.99 billion.Ford is now worth more than cross-city rivals General Motors, worth about $90 billion.

Under Farley’s Ford+ program, the company is working to shift to electric vehicles, including the Mustang Mach E and the all-electric Ford F-150, as well as connectivity services to generate recurring revenue. The company expects an adjusted EBIT margin of 8% in 2023 — Earlier than Many analysts expected.

“Mach-E and Lightning, their order base is overwhelming us,” Ford said. “We’re on an electrification journey, but not only that. It connects to customers, all the services that will be developed around electrification.”

family shares

Ford directly owns approximately 20.3 million shares, including restricted stock, common stock and Class B stock. Those may not include some trusts with assets worth more than $500 million as of Thursday’s close.

Descendants of company founder Henry Ford hold 71 million Class B shares worth about $1.8 billion. Once the Ford family’s Class B shares fell below about $60.8 million, the Ford family’s voting power would be reduced.

Some have criticized the dual-class system for unfairly allowing families to retain control of the automaker. Ford has repeatedly defended the dual-class structure because it allows the automaker to focus more on the long-term rather than being another “no-name, no-name company.”

.