Ford’s Struggles Continue: 6 Top Executives Paid More Than Its 2019 Net Income

While Ford’s (F) vehicle production remains closed because of the corona virus pandemic, the automaker is looking to preserve its cash, recently taking down $15 billion from its revolving credit facility, it has been revealed that the cumulative compensation of six of the company’s top executives exceeds its annual net income.

In 2019, Ford reported a net income of $47 million, down from $3.7 billion in 2018, but paid six executives $70 million combined, in a year where the automaker has been troubled by a botched Ford Explorer launch, recalls, and warranty costs, USA Today reported.

According to the news outlet, CEO Jim Hackett was paid $17.36 million in 2019, while Executive Chairman Bill Ford received $16.76 million, and Tim Stone, chief financial officer for the company, was paid $8.32 million after being hired on April 15. Chief Financial Officer Bob Shanks, who Stone replaced, reportedly made $8.32 million in 2019, while Jim Farley, who was president, New Business and Technology and Strategy, at the time, received $8.36 million while Joe Hinrichs, then-president, Automotive, was paid $11 million.

Cash has been Ford’s main focus as of recent, along with other automakers like GM that drew from its revolving credit facility and suspended dividends as well as stock buybacks. Ford has also suspended its dividend and is reported to have $30 billion in cash on hand as of April 9..

With the corona virus continuing to bear down, Ford is in the midst of a struggle as it contends with re-opening plants during the COVID-19 pandemic and determining when its highly-anticipated Ford Bronco should be released as well as the new F-150 pickup truck – both scheduled for launch in 2020.

Ford reported that it expected a $600 million loss before taxes, but disclosed in its Securities and Exchange Commission filing that it had an estimated net loss of $2 billion for January through March because of the coronavirus pandemic due to shutdowns and a decline in vehicle sales, the news outlet said.