DETROIT -- Ford Motor Co. has cut its quarterly stock dividend in half to 5 cents per share for the third quarter. The dividend will be paid Sept. 1.
Also, the 12 members of Ford's board of directors cut their pay in half, the automaker said Thursday.
Before Thursday, Ford board members were each getting annual pay of $200,000. Of that amount, $80,000 was in cash and $120,000 in deferred stock. Now, directors will get $40,000 in cash and $60,000 in deferred stock.
In addition, Irvine Hockaday Jr. was paid an extra $10,000 a year as the boards presiding director. He will now be paid $5,000. Also, the five directors who chair the boards committees were paid an extra $5,000 a year. They will now get $2,500 extra.
Ford will still provide new vehicles to board members.
The company had paid a quarterly dividend of 10 cents per share since the first quarter of 2002. It paid 15 cents per share in the fourth quarter of 2001 and before that 30 cents per share.
"Our directors are well-aware of the difficulties and sacrifices involved in turning around our company," CEO Bill Ford said in a statement.
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