Ford president of the Americas Mark Fields is giving up use of a company jet for his weekly commute to his home in Delray Beach, Florida after it attracted criticism.
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US media had calculated that the perk – which had been part of Field’s compensation package – had cost $US900,000 last year, based on a declared cost of just over $214,000 for three months in 2005.
The Detroit News noted that Fields has come under criticism for the perk in recent months as the struggling automaker moves to axe over 40,000 jobs and trim employee benefits to cut costs.
The paper said Fields recently was surprised outside his Florida home by a local television news reporter who asked him to explain how he could reconcile this costly travel arrangement with his calls for sacrifice from Ford employees.
A Detroit television station devoted a three-part news story and an internet/phone-in session to the subject. Neither Fields nor his boss Bill Ford would answer questions directly, referring the reporter to official spokesmen. The Wall Street Journal also carried a story quoting prominent Ford dealers objecting to the perk, though two who spoke to the Detroit News were more sympathetic, saying the arrangement was understandable but the issue was about how it appeared to the public at large.
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By GlobalDataFord spokesman Tom Hoyt told the paper that the Fields made the decision, which was conveyed to employees in an internal webcast on Thursday. Hoyt added that Fields had decided the controversy was diverting attention away from more important issues – namely Ford’s efforts to turnaround its North American automobile business.
Fields is expected to continue his weekly commute from south Florida, where his family lives, using a commercial airline, the report said.
The Detroit News said use of the Ford corporate jet for his personal travel was part of Fields’ compensation agreement when he was promoted to head of Ford’s Americas group in 2005 and, as such, has always been a matter of public record.
US reports also noted that Fields had relocated several times during his Ford career – he was noted for his turnaround efforts at Mazda in Japan – and that the private plane perk had been negotiated to allow his family some stability.
