"F" Needs Some Heat.............
Ford Motor Co. (F) shareholders put heat on Chief Executive Mark Fields and Chairman Bill Ford during the company's annual shareholders meeting Thursday morning, pressing the executives to explain why the stock price has lost more than one-third of its value during Mr. Fields' tenure.
The 114-year-old auto maker, like its Detroit rival General Motors Co., has booked substantial profits during a seven-year hot streak for U.S. car sales and strong appetite for lucrative trucks, but shares in domestic auto companies have been battered. Ford and GM have long been subject to the industry's boom-and-bust cycle, and have struggled to sell investors on a strategy to escape that trend.
Tesla Inc., the Palo Alto, Calif., electric-car maker run by billionaire Elon Musk, surpassed Ford and GM's market capitalization earlier this year, underscoring Wall Street's concerns about Detroit's ability to outgun Silicon Valley in developing must-have electric cars or autonomous driving capabilities. Tesla sells a fraction of what Ford or GM delivers, yet has consistently won favor among investors impressed by the company's growth prospects.
Mr. Fields faced heightened scrutiny from the company's board this week, as directors scheduled an additional day of meetings pressing the executive for clarity on strategy. Mr. Ford, great grandson of Henry Ford, also faced considerable criticism concerning the stock price during his tenure as chief executive early last decade.
Ford investors, submitting questions ahead of time for the virtual meeting, described the share price as "pathetic" and wanted to know what company executives are doing to increase value. Ford's earnings have resulted in hefty bonuses to its top executives, including Mr. Fields and some shareholders feel left behind.
One shareholder, who wasn't named, asked why Ford isn't using its cash for additional share buybacks. GM has been repurchasing billions of dollars of shares, and Ford has employed similar tactics in recent years.
