Ford CEO cites progress, some shareholders upset
(Adds CEO, shareholder comments, some background, updates stock price)
WILMINGTON, Del., May 10 (Reuters) - Ford Motor Co. (F.N) Chief Executive Alan Mulally said on Thursday the automaker was making progress in its restructuring, even as shareholders chided the company's chairman for not doing enough.
"We are not where we need to be, but we are making very good progress," Mulally told shareholders at the company's annual meeting.
Ford is attempting to engineer a turnaround from last year's record $12.6 billion loss and reinvent itself as a leaner and more flexible competitor.
"You will be pleased with what you see in the months and years ahead," Mulally said, adding that the turnaround would take time. "You can expect from us what I expect from my team
-- clearly stated goals and candid assessments of our progress -- clearly stated goals and candid assessments of our progress based on facts," he said.
But some of the 79 shareholders who attended the meeting expressed anger and opposed the reelection of executive chairman Bill Ford Jr. to the board.
Many shareholders also voted for an initiative to strip the founding Ford family of most of its voting power by converting Ford Class B stock to common stock.
The Class B shares, which represent less than 4 percent of the shares outstanding, give the founding family 40 percent voting power.
The proposal has been rejected for three consecutive years, but received the highest number of votes in favor this year. About 27 percent of votes were cast in favor of the proposal, up from 23 percent last year and 25 percent in 2005.
All eight shareholder proposals were voted down, but that plan drew the highest support of all the resolutions.
Bill Ford said investors are "attracted by long-term stability the Class B shareholders provide to the company."
Mulally told reporters after the meeting that Ford family members are "very, very supportive of the changes" the automaker is making. "They are shareholders; they believe in Ford and want Ford to be successful," he said.
Other proposals included one requiring Ford to set targets for reducing its greenhouse gas emissions and another to produce a report on how the automaker is hurt by higher health care costs.
FORD UNDER ATTACK
Sam Joanette, a Ford shareholder who said he lost $1 million in Ford stock, said Bill Ford Jr. was "responsible for the destruction of the company."
"You are a failure ... You are the worst chairman and CEO to ever lead the company," Joanette said.
Bill Ford, great-grandson of founder Henry Ford, has been chairman since 1999 and was chief executive officer from October 2001 to September 2006, when he hired Mulally for the top job.
Ford shares fell nearly 3 percent in 2006, after a 47-percent drop in 2005.
"This entire management team is dedicated to turning this company around," Ford told upset shareholders, adding that Mulally was the "best person" to spearhead the effort. Speaking to reporters on the sidelines of the event, Mulally said the automaker would consider reinstating a dividend to shareholders as the company progresses with its turnaround effort and tries to restore profitability.
Ford eliminated its dividend in September 2006.
Mulally also said the automaker is on track for a 14 to 15 percent share of the global market. Ford spokesman Tom Hoyt later clarified that Mulally was referring to the U.S. market.
Ford shares were down 4 cents at $8.31 in midday trade on the New York Stock Exchange.
((Additional reporting by Poornima Gupta in Detroit))
((Reporting by Jui Chakravorty; Reuters Messaging: jui.chakravorty.reuters.com@reuters.net; e-mail: jui.chakravorty@reuters.com; +1 313-967-1903))
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