DETROIT (Bloomberg) -- Ford Motor Co., whose founding family controls the automaker, said it will pay Edsel Ford II's $125,000-a-quarter consulting fee in cash rather than restricted stock during the second half of this year.
The company disclosed the change for the great-grandson of founder Henry Ford in a U.S. regulatory filing today. Edsel Ford, 61, and the automaker will agree by the end of each year whether the following year's payments will be in cash or shares, according to the filing.
Edsel Ford, a Ford board member, has had a consulting contract with Ford Motor since 1999 that paid him in shares whose sale is restricted for a year, said spokesman John Stoll.
“He is a valuable consultant to the company who represents the company at numerous events, such as dealer meetings and Nascar” auto races, Stoll said. The payment change “is being done because it is less dilutive to shareholders and for ease of administration. It also gives Edsel maximum flexibility.”
Ford Motor Executive Chairman Bill Ford, Edsel's cousin, hasn't taken a salary, bonus or stock options for the past five years, said Mark Truby, a company spokesman. Bill Ford has said he will forgo such compensation until the automaker returns to “sustained automotive profitability.”
The company reported net income of $2.1 billion in this year's first quarter and $2.72 billion for all of last year.
From 2006 through 2008, Ford posted losses totaling $30 billion.
CEO Alan Mulally on April 27 said the automaker would be “solidly profitable” this year.