Former chief executive Jacques Nasser has not left Ford empty-handed. Nasser has ensured that he will receive his full salary for the year, plus a compensation package based on the company’s performance and share price this year.
Former chief executive Jacques Nasser has not left Ford empty-handed. Nasser has ensured that he will receive his full salary for the year, plus a compensation package based on the company’s performance and share price this year.
Nasser is still eligible to receive his full pension – at least R7,6 million a year – and his full salary for this year.
A month before his departure, Nasser worked out a deal with Ford, in case of his early retirement, that entitled him to receive the maximum number of annual stock awards he would be eligible to receive, as well as full retirement and pension benefits.
According to the Wall Street Journal website, Ford said the value of Nasser’s performance stock rights would be based on the company’s future performance.
It is believed that, by April this year, Nasser had between 317 000 and 470 000 such rights based on performance between 2000 and 2002.
Nasser’s bonus would be based on his performance and the company’s stock price. Ford’s shares this week were at $16,34 (R155) on the New York Stock Exchange, which, it is believed, would mean a bonus of around R47 million for Nasser. He was paid a salary of R15,2 million and a bonus of R73,15 million in 2000. Nasser’s compensation agreement also includes a “non-compete” clause that prohibits him from joining one of Ford’s competitors.
It was also revealed that Ford agreed to pay the head of its Premier Automotive Group, Wolfgang Reitzle, R47,5 million if he stays with Ford until 2005.
Meanwhile, both Ford and General Motors have decided to continue with the zero per cent finance deals it implemented in the wake of the September 11 terrorist attacks in the United States.
The offers boosted October sales for both manufacturers. GM’s offer will run until January 2, while Ford’s will end on January 14. The GM scheme had been due to end on November 18, while Ford’s was supposed to end next week.
GM said the extension was designed to build on the group’s "positive momentum".