Ousted Ford Executive Nair to Keep Retirement Benefits, Healthcare -- Update

By John D. Stoll 

Raj Nair, a former Ford Motor Co. executive ousted Wednesday amid misconduct allegations, will lose access to potentially $10 million of equity-based awards and bonuses, including a $5 million retention incentive, but will keep his retirement benefits and health care package.

Ford released terms of Mr. Nair's separation agreement Thursday, saying the former head of North American operations has agreed to a two-year noncompete clause and to cooperate with investigations or lawsuits in return for access to retirement and health-care benefits. He faces heavy financial losses, however.

The company said Mr. Nair won't receive stock awards for the 2017 and 2018 performance periods. He also loses unvested restricted stock options, unexercised options and certain final stock awards going back to 2015.

It is unclear exactly how much Mr. Nair stands to lose because he isn't an officer listed in the most recent annual proxy statement, but a review of past filings related to his compensation indicates he was in line for roughly $10 million. Based on disclosures related to his predecessor, Mr. Nair likely earned a salary in excess of $1 million.

Mr. Nair was awarded a $5 million retention bonus nearly a year ago amid a shake-up in the company's top ranks. He was named head of North American operations by Chief Executive Jim Hackett in May after the firing of Mr. Hackett's predecessor, Mark Fields.

Ford named Kumar Galhotra to succeed Mr. Nair earlier Thursday along with several other high-profile management changes.

Write to John D. Stoll at [e-mail]

(END) Dow Jones Newswires

February 22, 2018 18:38 ET (23:38 GMT)

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