About half of the intermediate management does not obtain the stock bonuses to which they are used to
February 18, 2025 at 6:08 p.m.
–>
- Ford reduces stock bonuses to about half of its intermediate management.
- The senior executives will decide what half of their intermediate management personnel will get bonuses.
- This decision only occurs a few months after other costs to reduce costs by Ford.
Ford tightens his belt, and this time, average management feels the pressure. In a letter sent to employees last week, he revealed that around half of the intermediate management will not get share premiums this year. Obviously, Ford thinks that this decision will encourage performance – and, in particular, it is the second time in less than a year that it has reduced bonuses to managers.
The scholarships, generally awarded in March and spread over three years, have long been a key incentive to keep talent. But now it seems that Ford sends a new message: if you do not get your weight, do not expect a payment. The senior executives must decide what half of their intermediate management personnel get the bonuses this time and which do not.
Read: Ford PDG warns that Trump’s prices cause “chaos”
A company spokesperson addressing the free press of Detroit considered him “the conduct of a high performance culture which recognizes and rewards employees for their commercial contribution”. No matter how you cut it, however, the Ford cost can be really surprising.
The Blue Oval has seen its stock slide about 23% in the past year while other brands like GM and Tesla have headed for the other meaning. Doing what it can to reduce costs and at the same time encourage more efficient work could be a winning decision – or at least the powers in place at Dearborn Hope.
At the same time, it is not a single stitch attack against swollen costs. Last November, Ford announced its intention to reduce 4,000 jobs in Europe, blaming the slowdown in sales of electric vehicles and the growing competition from Chinese car manufacturers.
These dismissals should extend in 2027 while Ford tries to rationalize its inflated operations. In addition, the company has reduced certain manager bonuses by 65%. “I am proud of the progress we have made, but we are not fully satisfied,” said Jim Farley, CEO of Ford at the time. Obviously, the brand is still not satisfied all these months later.
Farley expressed Ford’s transformation into a leaner and more competitive car manufacturer. It remains to be seen that the bonus reduction bonuses and the cutting workforce will get them, but one thing is certain: Ford managers are about to discover what the “cost reduction” really means. Only this time, they will be at the reception.
