FoMoCo President and CEO Alan Mulally has been at the reigns for almost five years now, and much if what he set out to do has been achieved. His employment contract however, does not set out a finite term of service, and this leaves investors with questions about Ford’s plan for his successor, when the time comes. Though Mulally is still going strong at 65, Wall Street is always concerned with what is to come next.
“The rational investor would like to get the sense that there is a process in place,” said Brian Johnson, a Wall Street analyst with Barclays Capital. “This is the hallmark of strong, well-run companies.”
Mulally has rigorously worked to expand the skills of Ford’s brass, and most execs ar enow regarded as being qualified to step in. One of the reasons however that this remains a sticking point with the public, is that Ford’s recent success seems to be tied – at east in the public eye – to Mulally and his star power.
Ford must now lay the groundwork for a succession plan, without upsetting the chemistry that Mulally has in place there, which would definitely stifle progress.
– By: Stephen Calogera