Ford managers will see smaller bonuses again in 2024

In a repeat of 2023, Ford (NYSE:F) is again cutting managers’ bonuses, this time by 35%, as the company’s performance continues to lag expectations and performance metrics were not met for a second year.

“Obviously, we made good progress on manufacturing, but we have a lot more work to do in North America and that includes freight and duty,” CEO Jim Farley said in Monday’s earnings call.

“When we meet or exceed our targets for those factors – and we achieve the ambitious goals of Ford+ – the team is rewarded,” a Ford spokesman was quoted on media sources Thursday. “We are focused on lowering our costs, improving our quality and making Ford a higher growth, higher margin, more capital efficient and more resilient business.”

Although bonuses can be restored to their full amounts contingent on Q4 results, the company’s guidance suggests otherwise. The carmaker lowered its full year profitability outlook in its two profit engines, Ford Pro and Ford Blue, while its electric vehicle division is expected to report another loss in FY24.

Farley is also trimming his bonus package after a 13% cut in 2023. Of Detroit’s Big 3, Farley’s 2023 bonus was the smallest at $2.4M compared to $5.25M for General Motors’ (GM) Marry Barra, and €10M for Stellantis (STLA) CEO Carlos Tavares which was tied to electrification targets.