Ford Motor Company was incorporated in Delaware in 1919. They acquired the business of a Michigan company, also known as Ford Motor Company, which had been incorporated in 1903 to produce and sell automobiles designed and engineered by Henry Ford. They are one of the world’s largest producers of cars and trucks. They and their subsidiaries also engage in other businesses, including financing vehicles.
They have two operating sectors: automotive and financial services. Within these sectors, their business is divided into reportable segments based upon the organizational structure that they use to evaluate performance and make decisions on …show more content…
3b. Which of them has been deemed “independent” of Ford? (P18)
Stephen G. Butler, Kimberly A. Casiano, Anthony F. Earley, Jr., Richard A. Gephardt, Irvine O. Hockaday, Jr., Richard A. Manoogian, Ellen R. Marram, Homer A. Neal, Gerald L. Shaheen, and John L. Thornton.
3c. How does Ford determine director independence? (P18)
A majority of the directors must be independent directors under the NYSE Listed Company rules. The NYSE rules provide that no director can qualify as independent unless the Board affirmatively determines that the director has no material relationship with the listed company. Ford adopts a lot of standards in determining whether or not the director has a material relationship with the Company and these standards are contained in Ford’s Corporate Governance Principles.
3d. Why does independence matter to shareholders?
The board of directors represents the majority of stockholders to ensure the organization is run according to the organization’s charter and that there is proper accountability. If the directors are not independent, they can’t protect the shareholders’ interests. For example, they may have inadequate oversight of management, be dominated by management.
3e. What characteristics is Ford seeking when considering individuals to serve on its board? (P5)
Among the most important