The Wall Street Journal
Ford Friction Led to Leclair's Exit
Finance Chief's Departure Said to Reveal Tensions in Auto Maker's Management
By MATTHEW DOLAN
The unexpected retirement of Ford Motor Co.'s chief financial officer last week came after increasing friction between him and other senior executives, people familiar with the matter said.
Top executives at Ford in recent weeks spoke with Chief Executive Alan Mulally and Chairman William C. Ford Jr. about their dissatisfaction with CFO Don Leclair, these people said. The working relationship had frayed so much that at least two high-level company officials talked openly about whether they could continue to working with Mr. Leclair serving as CFO, they said.
The strained relations between Mr. Leclair and other members of the Ford's senior management team centered on whether Mr. Leclair had been too forceful in pursuing his own agenda without informing other vice presidents in a timely way of his plans, according to people familiar with the matter.
Company spokesman Mark Truby declined to comment Sunday on Mr. Leclair's exit, saying that Mr. Mulally addressed the overall issue Friday. At that time, Mr. Mulally praised Mr. Leclair's tenure, saying in a statement that "Don's expertise and business acumen have been invaluable to Ford."
In a follow-up interview Friday, Mr. Mulally didn't talk about any tension within his executive ranks and said Mr. Leclair's departure was not linked to a difference over the future direction of Ford.
Mr. Leclair released a brief statement Friday, saying that "I have appreciated my time at Ford and now look forward to spending more time with my family and pursuing other interests." He recently re-married and is awaiting the birth of his first grandchild. Through a company spokesman, Mr. Leclair declined an interview request Sunday.
Mr. Leclair's departure was announced Friday as U.S. auto companies scrambled to address historic drops in their stock value and questions about whether they have enough cash to carry them through the economic downturn. Ford's stock closed at $1.99 on Friday. A year ago the stock was trading for $8.23.
Mr. Leclair's retirement caught off guard many who follow Ford. Only days before the announcement, he met with financial analysts at the Paris auto show.
Ford is also about to report its third-quarter earnings, and is expected to announce a substantial loss. The company posted a loss of $8.7 billion for the second quarter.
Seen by supporters as a strong advocate to protect his company's bottom line, Mr. Leclair was credited with engineering a 2006 financing deal that has left Ford with a significantly larger cash cushion than either of its Detroit rivals at a time when all three Detroit auto makers are losing money and using up billions of dollars in cash each quarter.
Nevertheless, Mr. Leclair was seen as distant and rigid, working apart from others on the management team, people familiar with the matter said. He also did not have the strong support of the Ford family, whose members continue to control the auto maker through a separate class of stock, they said.
Ford family members were also displeased earlier this year when they learned that billionaire investor Kirk Kerkorian had quietly accumulated a 4.7% stake in the company.
Mr. Kerkorian began buying Ford shares after his adviser, Jerome B. York, had discussions with Messrs. Mulally and Leclair. Mr. Kerkorian later increased his stake to 6.43%.
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Ford Friction Led to Leclair's Exit
Finance Chief's Departure Said to Reveal Tensions in Auto Maker's Management
By MATTHEW DOLAN
The unexpected retirement of Ford Motor Co.'s chief financial officer last week came after increasing friction between him and other senior executives, people familiar with the matter said.
Top executives at Ford in recent weeks spoke with Chief Executive Alan Mulally and Chairman William C. Ford Jr. about their dissatisfaction with CFO Don Leclair, these people said. The working relationship had frayed so much that at least two high-level company officials talked openly about whether they could continue to working with Mr. Leclair serving as CFO, they said.
The strained relations between Mr. Leclair and other members of the Ford's senior management team centered on whether Mr. Leclair had been too forceful in pursuing his own agenda without informing other vice presidents in a timely way of his plans, according to people familiar with the matter.
Company spokesman Mark Truby declined to comment Sunday on Mr. Leclair's exit, saying that Mr. Mulally addressed the overall issue Friday. At that time, Mr. Mulally praised Mr. Leclair's tenure, saying in a statement that "Don's expertise and business acumen have been invaluable to Ford."
In a follow-up interview Friday, Mr. Mulally didn't talk about any tension within his executive ranks and said Mr. Leclair's departure was not linked to a difference over the future direction of Ford.
Mr. Leclair released a brief statement Friday, saying that "I have appreciated my time at Ford and now look forward to spending more time with my family and pursuing other interests." He recently re-married and is awaiting the birth of his first grandchild. Through a company spokesman, Mr. Leclair declined an interview request Sunday.
Mr. Leclair's departure was announced Friday as U.S. auto companies scrambled to address historic drops in their stock value and questions about whether they have enough cash to carry them through the economic downturn. Ford's stock closed at $1.99 on Friday. A year ago the stock was trading for $8.23.
Mr. Leclair's retirement caught off guard many who follow Ford. Only days before the announcement, he met with financial analysts at the Paris auto show.
Ford is also about to report its third-quarter earnings, and is expected to announce a substantial loss. The company posted a loss of $8.7 billion for the second quarter.
Seen by supporters as a strong advocate to protect his company's bottom line, Mr. Leclair was credited with engineering a 2006 financing deal that has left Ford with a significantly larger cash cushion than either of its Detroit rivals at a time when all three Detroit auto makers are losing money and using up billions of dollars in cash each quarter.
Nevertheless, Mr. Leclair was seen as distant and rigid, working apart from others on the management team, people familiar with the matter said. He also did not have the strong support of the Ford family, whose members continue to control the auto maker through a separate class of stock, they said.
Ford family members were also displeased earlier this year when they learned that billionaire investor Kirk Kerkorian had quietly accumulated a 4.7% stake in the company.
Mr. Kerkorian began buying Ford shares after his adviser, Jerome B. York, had discussions with Messrs. Mulally and Leclair. Mr. Kerkorian later increased his stake to 6.43%.
for more CLICK HERE