Morningstar | We Like Ford's Breaking Tradition With Outside Hire for Next CFO
Ford announced a reorganization and leadership moves that although significant will not change our fair value estimate. Last month, media reported CFO Bob Shanks, 66, would retire at year-end; Ford confirmed this March 21 with the hiring of Tim Stone, 52, as its new CFO effective June 1. Stone will join Ford as an officer on April 15. Shanks will remain through year-end to ease the transition. Ford typically promotes CFOs from within (Shanks, for example, is a 42-year Ford veteran) because its CFO generally has an operational role beyond finance. We don't mind the outside hire in this case because we didn't see a Ford finance executive ready to take over. Also, gaining Stone's tech industry background along with his finance acumen is a good move with the emergence of autonomous vehicles likely to perform many services in the future around ride-hailing and logistics. We may see more auto and tech executives changing places as the two sectors converge. GM recently lost its head of manufacturing, Alicia Boler Davis, reportedly to Amazon.Stone spent 20 years at Amazon, so he has experience leading a growing business, which Ford Smart Mobility should be over time. Our Amazon analyst says Stone was well regarded there;Â he held many finance roles including CFO of Amazon Web Services and oversaw the integration of Whole Foods. Stone then became CFO of Snap but resigned in January after only nine months. A Snap Jan. 15 8-K filing says there were no disagreements, and we suspect, given February rumors of Shanks retiring, that Ford approached Stone about the job while he was still Snap's CFO.
Ford also announced North American COO Stuart Rowley, 51, will become president of Ford Europe on April 1 and the establishment in 2020 of a new business unit, the international markets group, led by current Middle East and Africa president Mark Ovenden, 54. Ford recently made China its own unit and is doing the same with foreign markets outside Europe, China, and South America.
Ford Motor designs, manufactures, markets, and services a line of Ford cars, trucks, sport utility vehicles, electrified vehicles, and Lincoln vehicles, as well as provides financial services through its subsidiary, Ford Motor Credit Company LLC. The company is engaged in electrification; mobility solutions, including self-driving services; and connected vehicle services. The company has three operating segments: Automotive, which includes the sale of Ford and Lincoln vehicles, service parts, and accessories; Mobility, which includes its autonomous vehicles and its investment in mobility through Ford Smart Mobility LLC; and Ford Credit, which includes vehicle-related financing and leasing activities.
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