According to six people familiar with this case, about half of the average managers in Ford Motor will not receive a bonus of action in what is perceived internally as the latest CEO attempt by Jim Farley to reduce the manufacturer's costs.
Warehouse prizes are usually paid in March, but higher -level managers were told to choose which half of their management employees would receive them, they informed four sources.
Ford said that the change was to encourage improvement of employees' results.
“We focus on managing a high-performance culture, which recognizes and rewards employees as their business contribution,” said Ford spokesman.
Dearborn, Michigan, the manufacturer, struggled with inefficient operations, both as part of the electric vehicle department and the activities of fuel -powered vehicles.
Farley for years told employees and Wall Street that Ford undergoes a fundamental transformation to become slimmer and more competitive, because it races with rivals from the USA, as well as Chinese producers and producer of EV Tesla.
Ford shares have dropped by about 23 percent over the past year, while Detroit Rival General Motors shares increased by about 23 percent by force of lower costs and higher profits.
Employees were informed about the change in the company's briefing last week and said that the justification for cutting off bonuses was based on performance, they gave six sources. Share subsidies bonuses were usually considered a way to maintain talents in car manufacturers, which recently said Farley was the key to his competitiveness. Prizes acquired within three years.
“The most important for me is the best talent and the best culture,” said Farley about profits this month, saying that the company cannot improve their results without recruitment and maintaining the right people.
Warehouse prizes are part of a larger compensation system based on results, which also includes cash prizes. Bonuses are granted to a wide company to employees of remuneration, mostly managers.
Ford separately sets a wide bonus of the company based on indicators, including the quality of the vehicle, total earnings and EV sales, which was 69 percent in 2024 from a total potential bonus, they gave three of the sources. Reuters announced in October that these bonuses would be reduced on the basis of the company's poor performance.