Alan Mulally's successor will have to wait until 2015
DETROIT — Mark Fields has a higher probability of becoming Ford’s next CEO with his promotion to chief operating officer next month, but he will have to be even more patient.
Executive Chairman Bill Ford also clarified that Alan Mulally, the automaker’s venerated 67-year-old CEO, won’t step down until the end of 2014 at the earliest, making him Ford’s longest-serving CEO since Henry Ford II’s 34-year tenure.
“Alan is here two more years,” Bill Ford said, adding the time frame “could go longer.” The two have shared a strong working relationship ever since the founder’s great-grandson asked Mulally to replace him slightly more than six years ago. Since then, Mulally has orchestrated a financial, cultural and product-led turnaround, all without needing emergency loans such as what the federal government made to General Motors and Chrysler in 2008 and 2009.
“I’ve never enjoyed working with anyone so much, so I’d like him to stay forever,” Ford said.
Mulally’s retirement date was the subject of much speculation across the industry. Many observers had expected he would step down at the end of 2013.
“I was surprised at the length of the tenure for Alan, but also pleased,” said analyst Rebecca Lindland of IHS Automotive in Greenwich, Conn. “They are trying to show Wall Street that they have a succession plan.”
Extending Mulally’s leadership buys more time for Wall Street to warm up to Fields and other top leaders.
Equity analysts at S&P Capital IQ said Thursday’s news “should reassure investors and limit further speculation on how long Mulally will stay. This supports the continuity that we are expecting and also acts to give a career path for senior executives.”
Those other executives include Joe Hinrichs, 45, who moves from president of Ford’s Asia Pacific Africa business to succeed Fields as president of the Americas.
Also reporting to Fields is sales and marketing chief Jim Farley, 50, who will also oversee Lincoln.
European chief Stephen Odell, 57, adds the Middle East and Africa to his duties. David Schoch, 61, will run Asia Pacific, filling the vacancy left by Hinrichs.
While most people saw the announcements as confirmation that Fields is Mulally’s heir apparent, a Morgan Stanley report said “a specific CEO successor is far less obvious today. The next Ford CEO is truly up for grabs. We believe Ford is keeping its options open to consider several talented managers in the organization to eventually take the wheel from Alan (including Hinrichs, Odell and Farley) — not just Mark Fields.”
Neither Bill Ford nor Mulally would say that Fields is being groomed to be CEO, but the executive chairman said again that he prefers the next CEO be an insider.
