Ousted Ford Executive Nair to Keep Retirement Benefits, Healthcare -- Update
February 22 2018 - 6:53PM
Dow Jones News
By John D. Stoll
Raj Nair, a former Ford Motor Co. executive ousted Wednesday
amid misconduct allegations, will lose access to potentially $10
million of equity-based awards and bonuses, including a $5 million
retention incentive, but will keep his retirement benefits and
health care package.
Ford released terms of Mr. Nair's separation agreement Thursday,
saying the former head of North American operations has agreed to a
two-year noncompete clause and to cooperate with investigations or
lawsuits in return for access to retirement and health-care
benefits. He faces heavy financial losses, however.
The company said Mr. Nair won't receive stock awards for the
2017 and 2018 performance periods. He also loses unvested
restricted stock options, unexercised options and certain final
stock awards going back to 2015.
It is unclear exactly how much Mr. Nair stands to lose because
he isn't an officer listed in the most recent annual proxy
statement, but a review of past filings related to his compensation
indicates he was in line for roughly $10 million. Based on
disclosures related to his predecessor, Mr. Nair likely earned a
salary in excess of $1 million.
Mr. Nair was awarded a $5 million retention bonus nearly a year
ago amid a shake-up in the company's top ranks. He was named head
of North American operations by Chief Executive Jim Hackett in May
after the firing of Mr. Hackett's predecessor, Mark Fields.
Ford named Kumar Galhotra to succeed Mr. Nair earlier Thursday
along with several other high-profile management changes.
Write to John D. Stoll at john.stoll@wsj.com
(END) Dow Jones Newswires
February 22, 2018 18:38 ET (23:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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