04:06 PM EDT, 05/13/2024 (MT Newswires) -- Ford Motor's ( F ) news on Friday that it will transition Chief Financial Officer John Lawler to a vice chair role supports management's efforts to build talent and change culture, UBS Securities said.

Ford said Friday that it hired former Lucid Motors (LCID) CFO Sherry House to eventually replace Lawler as the finance chief early next year. The CFO succession came as a surprise to UBS analyst Joseph Spak and likely to investors, he said in a note emailed Monday reiterating a neutral rating and a $14 price target on the stock.

"In our view, Lawler was a steady hand and liked by investors, so the change will need to be digested," he wrote. Shares of Ford closed 2.8% higher on Monday.

Lawler will take on broader responsibilities within strategy, global partnerships and lobbying, leading areas that Ford said are "critical to its long-term success."

Ford used the vice chair role before, including most recently between May 2021 and December 2022.

Some investors already have experience with House from her time at Lucid but an adjustment period will be needed, according to UBS. The optics are challenging given her background in electric vehicles at a time when investors like hearing about internal combustion engines amid the overall deceleration in EV demand. Ford may also field skeptics who know that it has had troubles hiring outside talent to the CFO role in the past, the brokerage said.

"We do note that this current plan looks to have a longer transition period than prior efforts," Spak said.

On an earnings conference call with analysts in February, Chief Executive Jim Farley said the company's performance management capabilities are crucial to bringing in and retaining the best talent while aligning incentives with shareholder value creation, according to a Capital IQ transcript.

These management moves are "part of Ford's initiative to build talent, capabilities, change their culture and develop succession planning," Spak said.

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