As part of our ongoing mission to promote transparency and corporate accountability, Equal Justice Solutions has initiated a shareholder investigation into Ford Motor Company. The full announcement is below:
FOR IMMEDIATE RELEASE
Law Firm Probes Recalls, Plunging Stock, and Questionable Executive Pay
June 2, 2025 – Wilmington, DE — Equal Justice Solutions, a faith-based public benefit law firm, has launched an investigation into Ford Motor Company (NYSE: F) regarding its escalating recall crisis, potential disclosure failures, and executive compensation policies misaligned with shareholder value.
The firm has issued a demand for inspection of corporate records under Delaware General Corporation Law § 220, seeking further information about board-level oversight of operational risks and executive pay decisions.
Pattern of Recalls and Quality Concerns
Ford has led the U.S. auto industry in vehicle recalls for three consecutive years. In 2023, the company reported $11.5 billion in warranty costs, up from $4.8 billion in 2014, according to company filings. In the second quarter of 2024, Ford disclosed an additional $800 million in recall-related charges, which contributed to a significant drop in its share price—the largest single-day decline since 2008. In November, the National Highway Traffic Safety Administration fined Ford $165 million, the second largest in the Agency’s history.
Just last week, Ford once again recalled 1.1 million vehicles for defective rearview cameras. These recurring issues have raised investor concerns about the effectiveness of Ford’s quality control systems and the Board’s oversight.
Executive Compensation vs. Performance
At the same time, Ford’s Board awarded CEO Jim Farley a total compensation package of $26.5 million in 2023, including:
- $1.7 million in base salary,
- $20.4 million in stock awards, and
- $4.4 million in other compensation and incentives.
In 2024, Farley’s pay decreased slightly to $24.9 million, following Ford’s failure to meet its internal quality benchmarks. However, the Compensation Committee’s disclosures have not made clear how recall-related performance or shareholder return were weighted in its evaluation process.
Equal Justice Solutions’ books and records request seeks to examine whether executive compensation decisions are properly aligned with long-term shareholder value and whether the company’s proxy materials provided adequate transparency under applicable law.
Shareholder Returns Compared to Peers
Ford’s stock has declined by 1.76% over the past three years, while General Motors returned +9.02%, and Tesla returned +62.5%, according to recent market data. In 2024 alone, Ford’s stock fell 18.8%, underperforming both peers and broad indices.
About Equal Justice Solutions
Equal Justice Solutions is reviewing whether these developments reflect potential breaches of fiduciary duty. The books and records demand seeks internal documentation related to:
- The basis for executive compensation awards,
- Risk management and quality assurance oversight,
- Disclosures made in proxy materials regarding performance metrics, and
- Any internal assessments of recall-related impact on financial performance.
This investigation is launched on a reasonable basis that Ford’s board has breached their fiduciary duty. No claims or allegations have been made, and Equal Justice Solutions will only proceed with a lawsuit if it feels it can prove its allegations beyond a preponderance of the evidence.
Equal Justice Solutions is a Christian, faith-based public interest law firm focused on complex matters, including corporate accountability and shareholder rights. The firm represents investors, consumers, and whistleblowers in matters where governance, transparency, and public trust intersect. It also represents select, ethical corporate clients.
Contact
Shareholders with questions or information may contact the firm confidentially at:
Dash Radosti, Esq.
302-281-2649
info@equaljusticesolutions.org