Biz people

Ford may start getting salary

Nearly three years after vowing to work for free until Ford Motor Co returned to profitability, Ford Executive Chairman Bill Ford Jr (right) could be back on the payroll.

In a filing with securities regulators, the No 2 US automaker said Ford could be compensated for his work in 2008 and future years after foregoing salary and bonus payments since 2005.

But at Bill Ford's insistence, no payments will be made to him until the compensation committee of Ford's board determines that the company has achieved its turnaround target of returning its auto operations to full-year profitability.

Ford aims to return to profitability in its core operations in 2009 and said the change to compensation terms for Bill Ford Jr reflected a judgment that the company was "on track" to hit that goal.

"Although the company's automotive sector has not yet achieved profitability, it has made substantial progress toward that goal," Ford said in a note filed as an addition to its annual report to the US Securities and Exchange Commission.

Ford said its board compensation committee decided to change the terms of Bill Ford's unusual 2005 compensation arrangement in light of the company's progress in restructuring its troubled North American operations.

The compensation committee also concluded that it was "not reasonable" to expect Bill Ford to continue to work for free "particularly after he has received no compensation for three years", the note filed with the SEC said.

In support of the decision, the company cited Bill Ford's recruitment of former Boeing Co executive Alan Mulally to run the automaker in 2006 and signs of progress in its turnaround efforts.

Ford spokesman Oscar Suris said Bill Ford had foregone compensation estimated between $25 million and $33 million during the three years of his no-pay vow.

Samsung chief's son questioned

Lee Jae-yong, son of Samsung Group Chairman Lee Kun-hee, presented himself for questioning to South Korean prosecutors yesterday as part of a probe into allegations of bribery and the illegal transfer of control of Samsung units.

Prosecutors summoned Lee Jae-yong (right) earlier yesterday, Samsung Group spokesman Yim Jun-seok said by telephone in Seoul. The prosecutors' spokesman wasn't immediately available for comment.

"I'm well aware of concerns and expectations about myself and Samsung Group," Lee said on live television before entering the special prosecutors' office in central Seoul. "I will sincerely respond to questions."

Authorities are investigating accusations by Samsung's former chief attorney, Kim Yong-chul, that the country's largest industrial group amassed funds to bribe influential people in government. Samsung has denied the charges.

The probe is also looking into whether Lee Kun-hee and executives illegally helped his son get control of Samsung units.

A South Korean court in May last year upheld the convictions of two Samsung Group executives for their role in helping Lee Jae-yong and other family members buy shares in the group's de facto holding company at below market price.

Both Her Tae-hak, a former head of Samsung Everland Inc, and the current president, Park Ro-bin, each received three-year sentences and fines of 3 billion won ($3.2 million) for breach of fiduciary duty. The sentences were suspended. Lee Jae-yong wasn't charged at the time.

(China Daily 02/29/2008 page16)