The VEP is detrimental to the interests of the common shareholder as it issues additional common shares to the Ford family free of cost.
While not an additional economic claim, this represents additional representation given to the Ford family.
In addition, these extra common shares given to the family can be sold in the open market without any significant effect in the family’s controlling interest in Ford through Class B shares, from where the dilutive property of this plan originates.
The two mentioned pension funds have also been sceptical about the actual intentions of the VEP, and correctly so.