About half of the middle managers at the Ford Motor will not get bonuses for shares this year in what is internally seen as the latest attempt by executive director Jim Farley to reduce the cost of car manufacturers, according to six people, I am introduced to this issue.
Share awards are usually paid in March, but higher managers have been said to be selected which half of their middle management staff will receive, four sources said.
Ford said the change is intended to encourage improvement in employee’s success.
“We are focused on the launch of a high performance culture that recognizes and rewards employees for their business contribution,” Ford spokesman said.
Dearborn car manufacturer, Michich, struggled with ineffective operations, both within his department of electrical vehicles for money combustion and fuel vehicles.
Farley has told employees and Wall Street for years that Ford is undergoing a fundamental transformation to become leaner and more competitive, because it is racing against American rivals, as well as Chinese car manufacturers and EV manufacturers.
Ford stocks have slipped around 23 percent over the past year, while the Detroit Rival General Motoros has increased by about 23 percent of lower costs and higher profits.
Employees were informed of a change in the company briefing last week and said that it was based on the performance of bonus reduction, six sources said. Share bonuses are usually considered a way to retain talent with a car manufacturer, which Farley recently said was crucial for his competitiveness. Awards vest for three years.
“The most important thing for me is the best talent and the best culture,” Farley told analysts at the invitation of earnings this month, saying that the company cannot improve its results without employment and holding the right people.
Share awards are part of a larger system of compensation based on performance, which includes reward prizes. Bonuses are awarded to a broad employee salaries company, most of whom are managers.
Separately, Ford sets a wide company bonus based on measuring data, including the quality of the vehicle, the total earnings and sale of EV, which was 69 percent in 2024 from the total potential bonus, three sources said. Reuters reported in October that these bonuses would be reduced on the basis of the fake performance of the company.
