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The Ford Motor Company has named a number of descendants of Henry Ford, founder Henry Ford, on the board, deepening the family’s involvement in the carmaker’s corporate management.
According to the company, Alexandra Ford English, 33, and Henry Ford III, 40, will be eligible for election at Ford’s annual shareholders’ meeting in May. Both are great-great-grandchildren of Henry Ford, who founded the business at the turn of the last century. Mrs Ford English is the daughter of current executive chairman Bill Ford.
If the two are elected, Ford family members will take three of the 14 management seats in the company. Currently, there are two descendants of the founder of the board, Mr. Ford and his 72-year-old cousin, Edsel Ford II, who is stepping down from the board this spring, the company said.
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Their appointments would extend a history of family oversight at the 118-year-old carmaker. Me. Ford English’s 63-year-old father has served as executive chairman since 2006 and was previously chief executive officer and chairman.
Edsel Ford II, the father of Henry Ford III, has been a director since the late 1980s. Elena Ford, a great-great-granddaughter of the founder, is Ford’s chief customer experience officer.
In an interview, Bill Ford said the family ties offer a long-term perspective that benefits shareholders and employees. He cited the 2008-09 financial crisis when the company avoided bankruptcy by pledging most of its assets, including its blue Ford logo, while competitors General Motors Co. and Chrysler underwent government-led restructuring.
“The family’s involvement in the company has yielded real and tangible results,” Ford said. “The family was very willing to take short-term pain, and no dividends, to get through difficult times.”
The Ford family’s super-class B shares give 40% voting power and effective control over the company. Bill Ford has amassed a growing percentage of Class B shares over the past few years, according to government regulations about 20% as of February 2020.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 13.40 | +0.61 | + 4.77% |
Mr. Ford said it continues to contribute its stake because it is confident in the company’s future.
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“All the different business opportunities that lie ahead of us are really compelling,” he said.
Charles Elson, a professor of finance at the University of Delaware who specializes in corporate governance, said it would be unusual for three family members on the board to serve on a large public company, even one with a two-tiered voting structure.
“It means more influence and more voice for the family, if we accept that the directors agree,” he said. Elson said.
Nell Minow, vice chairman of value-advisory firm ValueEdge Advisors and a longtime advocate for shareholder rights, said the addition of two Ford employees to the board would run counter to the corporate tendency to have a higher concentration of independent directors.
Ford shares have risen since the onset of the Covid-19 pandemic last year, when investors fled the automotive sector amid factory and supply chain disruptions. The share price has risen by 46% this year and has tripled since March 2020.
Alexandra Ford English and Henry Ford III, two great-grandchildren of Henry Ford, who founded the Ford Motor Company in 1903, have been appointed to the board of directors
Ford CEO Jim Farley took over in October and has been tasked with rejuvenating a business that has been reducing operating profits for five consecutive years. Mr. Farley focused on solving Ford’s troubling quality problems and further insisted on offering digital services.
Mr. Ford said the company’s 11 independent directors oversaw the awarding of the two younger Fords during the nomination process, and that he and Edsel Ford II were not involved.
He said the younger Fords offer a fresh perspective and knowledge of the business and the growth areas he focuses on. His daughter, for example, spent time as a driver in the operations of the company’s driverless car division, he said.
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Mrs. Ford English joined Ford in 2017 after working in fashion retail, including at Gap Inc. She quickly took over Ford’s ranks and now serves as a director in corporate strategy.
She is also a director at Rivian Automotive LLC, the startup of electric trucks in which Ford has a minority stake and strategic partnership.
Henry Ford III has been with Ford for 15 years and is now a director in investor relations, having worked in labor relations and working as marketing manager of Ford’s performance automotive division.