Outgoing CEO Alan Mulally, left, and Chairman Bill Ford Jr. answer questions during this year's share holder meeting in Delaware.
Just after announcing a $1.8 billion share repurchase plan, Ford Motor Co. held its 59th annual shareholders meeting, which quickly became an Alan Mulally lovefest.
The meeting, held in Wilmington, Del., began with a video memorial to William Clay Ford, gave shareholders a chance to express their thanks to Mulally, who is retiring in July. He joined the automaker in 2006 after leaving Boeing.
Plain-spoken and earnest, he led the company’s effort to take out what he called the biggest home equity loan in history to bolster the company against a coming recession. The effort worked and the automaker did not enter bankruptcy as General Motors and Chrysler did: a point of significant pride for many Ford employees.
One shareholder called for a standing ovation for Mulally – which he got – while yet another thanked the outgoing CEO for his contribution to reviving the company’s “spirit.”
“Alan somehow thank you doesn’t seem adequate but for now it will have to do,” said Bill Ford Jr. during the meeting. Mulally took the adulation in stride and deflected some of the praise to the employees.
“You are the most talented team I have ever had the privilege of working with,” Mulally said. “Our business is strong.”
In addition to showing its gratitude to the outgoing CEO, shareholders also voted to keep Ford’s split stock structure in place, although the vote to replace the Ford family’s special class of “B stock” reached a record high of 34.4% compared with last year’s previous high of 33.4%. The each “B share” of stock equals 16 shares of common stock.
The special class of stock had kept the Ford family in control of the company since it went public in 1956. Ford Jr. noted that the special voting class has allowed the family to override decisions that weren’t good for the company’s long-term viability.
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Ford also took note of the company’s current share price, which is in the mid $15 range, saying he wishes it were higher, but he believes the foundation is in place for that to happen.
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He also noted the company sold more than 6 million vehicles in 2013 worldwide, which is 12% increase, launching 23 new or refreshed vehicles this year globally and 16 in North America, including the new Ford Mustang and the aluminum-bodied Ford F-150.
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There was a down note as Mulally noted the high number of product launches would chew into the company’s profitability this year. Ford expects a lower overall profit of $7 billion to $8 billion this year. Ford also made $5 billion in contributions to its worldwide pension plans last year.