Raj Nair, was Ford President of North America until Wednesday, when he was ousted for improper conduct.
(Photo: Ford, Wieck)
Raj Nair, the former president of Ford North America, will keep health and retirement benefits despite being ousted from the company for “inappropriate behavior.”
He signed a two-year noncompete agreement with his former employer of 30 years that bars him from working in the automotive industry or for any potential competitors, according to documents filed Thursday with the Securities and Exchange Commission. He agreed to a standard waiver of claims against the company, to cooperate with any future company investigations and litigation “of which he can provide assistance.”
He forfeits a $5-million retention bonus that was to be awarded in 2020, documents show. Ford simply canceled Nair’s time-based restricted stock bonus, which was announced in 2017 with his promotion to the job.
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Because Nair was not among the top five officers of the company, his salary has not been disclosed in proxy statements written for shareholders and provided to the public.
The mechanical engineer left his job Wednesday after an internal investigation into reports of “inappropriate behavior” determined to be inconsistent with the company’s code of conduct, Ford said. The probe was the result of an anonymous tip.
Nair issued a statement in the Ford news release of “sincere regret that there have been instances where I have not exhibited leadership behaviors consistent with the principles of the company.”
Nair held his role from June 1, 2017, until Wednesday. Industry observers noted the importance of both the noncompete clause as well as an agreement to assist with court activity, if needed.
He led all aspects of Ford’s North American business units, having previously served as executive vice president of product development and chief technical officer. He had global responsibility for all aspects of design, engineering, research and product development, and played a key role in the company’s expansion into emerging mobility opportunities.
Prior to 2012, as vice president of engineering for product development, Nair oversaw all engineering for car, truck and SUV vehicles for Ford and Lincoln.
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