Ford Stock (NYSE:F) Sinks as Farley Takes Home $27.5 Million Payday

Executive compensation has long been an issue for companies, and legacy automaker Ford F -2.63% ▼ seems to be no different. In fact, recent reports note that Ford CEO Jim Farley just took home the fattest paycheck he has ever seen from Ford, hitting $27.5 million. Investors did not like the look of that bill, and sent Ford shares sliding nearly 2.5% in Friday afternoon’s trading.

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Reports sent to the Securities and Exchange Commission spelled it all out. CEO Jim Farley landed a $27.5 million payday, thanks in large part to Ford meeting goals around electric vehicle volume and overall product quality. While the list of recalls of late might suggest otherwise, Farley apparently met his goals therein. Perhaps more interesting is the revelation of just how much more Farley is paid than the average Ford worker. The ratio of Farley’s pay to average at Ford is—brace yourself for this one—295 to 1.

Moreover, Ford shelled out big money for the entire administrative floor, spending over $100 million total. Of that, about half, $47.7 million, went to Farley and executive chair Bill Ford, who landed $20.2 million by himself. Of course, it is worth pointing out that a lot of that amount was not paid out in cartoonish canvas bags with dollar signs on the side, but rather in company stock.

Another Nurburgring Win?

But then, it might have been worthwhile after all, as a report suggests that the Mustang may have beaten a General Motors GM -3.66% ▼ win at Nurburgring with the Corvette. Ford has not posted a new official time, reports note, but video from a testing session in March suggested that Ford pared off several seconds from its last time, which would beat the Corvette XR1X.

The Mustangs running the laps had been improved somewhat, featuring new “aero bits” as well as a “…new high-octane tune.” But whatever they did, we may be hearing more about Ford’s latest wins on one of the world’s most well-known test tracks.

Is Ford Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, 11 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 19.34% rally in its share price over the past year, the average F price target of $13.95 per share implies 23.29% upside potential.

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