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Ford Class B shares have a unique shareholder structure, which is worth understanding for anyone considering investing in the company.
The Class B shares are controlled by the Ford family, who hold a significant majority of the voting power.
Here's the key takeaway: the Ford family has a tight grip on the company's decision-making process.
But that's not all - the Class B shares also have a supermajority voting requirement, which means that at least 80% of the votes must be in favor of a proposal for it to pass.
Ford Family Ownership
The Ford family owns a significant number of shares, with Ford directly owning about 20.3 million shares.
These shares, which include restricted, common, and Class B stock, are worth more than $500 million as of the latest closing price.
The Ford family's voting power is tied to their Class B shares, which are worth about $1.8 billion and held by descendants of company founder Henry Ford.
There are 71 million Class B shares in total, and the family's voting power diminishes once their Class B shares fall below about 60.8 million.
Ford has repeatedly defended the dual-share system, saying it allows the company to focus on the long term and gives them a "face and maybe a humanity" that other companies lack.
The dual-class stock structure has been in place since the company went public in 1956 and has faced numerous shareholder challenges, with 36.3% of voters supporting a system that gave every share an equal vote at last year's shareholders meeting.
Shareholder Dynamics
Ford Motor Company has a unique shareholder structure, with a dual-class share system that has been in place since 1956. This structure vests 40% of the voting power in the hands of Class B stockholders, predominantly held by members of the Ford family.
The Class B stockholders have a significant amount of control over the company, with Henry Ford II, Benson Ford, Josephine Ford, William Clay Ford, and Eleanor Clay Ford all holding Class B stock in 1950. These family members have a long history of involvement with the company, with Henry Ford serving as president from 1906-1919 and Edsel Ford serving as president from 1919 until his death in 1943.
The institutional investors, such as Vanguard Group, BlackRock, and State Street Corporation, also play a crucial role in the governance of the company, owning a significant portion of Ford's publicly traded shares. They often influence major decisions through their voting rights at shareholder meetings, but their influence is limited by the dual-class share system.
Here is a breakdown of the Ford family's Class B stockholdings in 1950:
Note: The exact number of shares held by each family member in 1950 is not specified in the provided article sections.
Stock Sales and Shareholder Changes
The history of Ford Motor Company's stock sales and shareholder changes is a fascinating one. In 1905, Albert Strelow sold his 50 shares to James Couzens, marking one of the earliest changes in the company's ownership structure.
Over the years, the Ford family has played a significant role in shaping the company's destiny. Henry Ford bought out stockholders in 1919, acquiring 8,300 shares and becoming the majority stockholder. He also incorporated several companies, including Eastern Holding Company and Ford Motor Company of Delaware, to further consolidate his control.
Here's a brief timeline of key stock sales and shareholder changes:
These changes have had a lasting impact on the company's ownership structure and have shaped the dynamics of the Ford family's involvement in the business.
Institutional Investors
Institutional investors play a significant role in the governance of Ford Motor Company, often influencing major decisions through their voting rights at shareholder meetings.
Vanguard Group is one of the largest asset management companies in the world, holding a significant percentage of Ford's publicly traded shares.
BlackRock, another major asset management firm, also owns a noteworthy portion of Ford's equity.
State Street Corporation manages large index funds and holds a substantial amount of Ford's stock.
Some of the prominent institutional investors in Ford Motor Company include:
- Vanguard Group
- BlackRock
- State Street Corporation
Ownership Structure
Ford Motor Company's ownership structure is complex, with two types of stock: Class A and Class B. Class A shares are the common shares traded on the NYSE and are available to the general public.
The company's history of stock sales and stockholder changes dates back to 1905, when Albert Strelow sold his 50 shares to James Couzens. This was the beginning of a series of transactions that would shape the company's ownership structure.
In 1919, Henry Ford bought out stockholders, acquiring 8,300 shares and becoming the majority stockholder. He remained in this position throughout his lifetime.
The company's Class B shares are not publicly traded and are primarily held by the Ford family. This structure ensures that the family retains a significant degree of control over the company's decisions.
The dual-class stock structure was established in 1956, when the company went public. This structure has been in place ever since, with the Ford family holding a significant amount of Class B shares.
Here's a breakdown of the Ford family's Class B stockholders in 1950:
- Eleanor Clay Ford
- Henry Ford II
- Benson Ford
- Josephine Ford
- William Clay Ford
These individuals inherited their shares from their ancestors, who had acquired them through various transactions over the years.
The Ford family's control over the company is significant, with 40% of the voting power held by Class B shareholders. This is a result of the dual-class stock structure, which was established in 1956.
Investors and Employees
Ford's Employee Ownership programs encourage employees to invest in the company through stock purchase plans and retirement savings plans, aligning their interests with the company's long-term success.
Employees can own shares of Ford Motor Company, providing a financial incentive and a sense of ownership in the company they work for.
Frequently Asked Questions
What is the stock symbol for Ford Class B?
The stock symbol for Ford Class B is F_pb. This symbol represents the preferred series B stock of Ford Motor Co.
What are Class B shares of stock?
Class B shares are a type of common stock with varying voting rights and potential lower repayment priority in bankruptcy. They are a classification of equity ownership in a corporation with distinct characteristics.
What is the dividend for Ford Class B?
Ford Class B stockholders will receive a quarterly dividend of 15 cents per share. This dividend was declared by Ford's board of directors on October 16, 2023.
Can I sell my Class B shares?
Yes, you can sell your Class B shares, but be aware that a fee may be charged, unless you've held them for five years or longer.
Can I buy Class B stock?
Yes, you can buy Class B stock through the stock market or regulated over-the-counter (OTC) exchanges. Investors can easily purchase Class B shares by accessing these secondary markets.
Sources
- https://www.cnbc.com/2022/01/14/bill-ford-is-doubling-down-on-ford-shares-and-amassing-more-control-of-the-company.html
- https://www.stlouistrust.com/insights/ford-motor-shareholders-vote-to-keep-dual-share-structure/
- https://askus.thehenryford.org/researchguides/faq/414680
- https://www.hotbot.com/answers/who-owns-ford
- https://www.forbes.com/sites/joannmuller/2010/12/02/ford-familys-stake-is-smaller-but-theyre-richer-and-remain-firmly-in-control/
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