Ford Eliminates Stock Bonuses for Certain Managers to Encourage Performance | Carscoops

      Approximately half of Ford's middle management will not receive the stock bonuses they typically look forward to.

      Senior executives will determine which half of the middle management team will receive bonuses this year. This decision follows earlier cost-cutting actions taken by Ford just a few months prior.

      Ford is tightening its financial strategies, and middle management is particularly impacted. In a letter to employees last week, the company announced that around 50% of middle management will be excluded from stock bonuses this year. Ford seems to believe that this action is aimed at motivating performance, marking the second time in under a year that bonuses for managers have been reduced.

      The stock awards, generally distributed in March and spread over a three-year period, have historically served as a significant incentive for retaining talent. However, it appears Ford is now signaling that unless employees contribute effectively, they should not anticipate receiving a payout. Senior managers will decide which middle management members will receive bonuses and which will not.

      A spokesperson for Ford, speaking with The Detroit Free Press, described the initiative as fostering a high-performance culture that acknowledges and rewards employees for their contributions to the business. Regardless of the framing, Ford's ongoing cost-cutting measures are not particularly unexpected.

      Ford's stock has declined roughly 23% over the past year, contrasting with competitors like GM and Tesla, which have seen gains. Taking steps to reduce costs while simultaneously encouraging more efficient work could be a strategic move—at least that is what the leadership in Dearborn hopes.

      Furthermore, this is not just a singular effort to address excessive expenditures. In November, Ford announced a plan to eliminate 4,000 jobs in Europe, citing sluggish EV sales and increasing competition from Chinese manufacturers.

      These layoffs are anticipated to continue into 2027 as Ford seeks to streamline its extensive operations. Additionally, some manager bonuses have been cut by 65%. Ford's CEO, Jim Farley, remarked at the time that they are proud of their progress but not fully satisfied. It is clear that the company remains unsatisfied even months later.

      Farley has been outspoken about the need to make Ford a more agile and competitive automaker. Whether reducing bonuses and headcount will achieve that goal remains to be seen, but one fact stands out: Ford's managers are about to truly understand what "cost-cutting" entails, and this time, they will be directly affected.