mobile-menu-icon
Ford Authority

Ford Employee Bonuses Doubled After Controversy Over Payout Formula

Earlier this month, Ford Authority reported on forthcoming Ford employee bonuses for 2022 following a challenging year that was riddled with supply chain constraints and numerous pandemic-related flareups. Now, as white collar workers continue to see their return-to-work dates get pushed back, it seems that the annual Ford employee bonuses for those salaried workers will be doubled following a bit of controversy regarding their payout formula, according to the Detroit Free Press.

The controversy started after Ford’s cross-town rival – General Motors – announced its earnings earlier this month, at which time it also revealed that salaried workers would receive a performance bonus based on a 200 percent across-the-board company performance factor. Just a couple of days later, Ford also announced its earnings, but did not elaborate on bonuses until days later, when it revealed that its bonus formula would be based on a 54 percent payout for lower-level salaried workers and their managers, and a 135 percent payout for senior managers, regional directors, global directors, executive directors, and vice presidents. These numbers were reportedly based on global performance goals, rather than those based solely in the U.S.

The fact that Ford had chosen to give high-level salaried workers a better bonus than lower-level ones, as well as the fact that it focused on global performance didn’t settle well with employees, many of whom complained about the decision directly to CEO Jim Farley. Farley and a group of executives including Bill Ford promptly decided to cut the bonuses of around 40 top-level employees at the automaker and double the dollar amount being distributed to lower-level employees in one fell swoop.

Ford Plants

“Our bonuses are going to go down to help pay for this,” Farley told the Detroit Free Press. “That’s just kind of the ethos of our company. The leadership of the company and the working level will get the same bonuses. The working levels will go up approximately double and leadership team will go down to the same level. As far as the leadership team, there’s no daylight between any of us. We’re here to serve the employees. You know that’s my philosophy. That’s why we’re making this change. This change is all about serving our employees – having our top management and our team in North America be on the same page.”

At the same time, Farley admitted that this may not be the case every year. “There may be years we don’t make adjustments and there may be years when we do,” he said. “We felt in this case it was the right thing to do.”

We’ll have more on Ford’s employee bonuses soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

Subscribe to Ford Authority

For around-the-clock Ford news coverage

We'll send you one email per day with the latest Ford updates. It's totally free.

Comments

  1. Stephen Satterlee

    Thanks

    Reply
  2. Stephen Satterlee

    Why is it that Farley and the other Ford executives are constantly out of touch with their customers? The American consumers don’t like idle excuses that are coming out of Ford with the chip shortage and other supply shortages to build the vehicles. How long are you going to keep stringing your customers on? Why didn’t Farley and the other management see this chip shortage and other shortages coming and take a proactive position rather than reactive. Makes Farley look like a rookie. My being close to 70 years old reminds me to never make excuses, but rather take immediate action. If the suppliers can’t keep up, fire them. They had their chance. Get companies that can and will deliver, not just deliver lip service. Quit making excuses and get the autos built on time. Your customers are becoming very fed up with Ford. You might have plenty of EV customers right now, but you are totally forgetting the ICE vehicles, your bread and butter. We don’t like to be left out when the EV gets introduced and promoted when you can’t even keep up with your vehicles getting built. Aren’t the new Ford vehicles the factor that determines whether Ford makes it or not? If so, you need to do a lot better than you are. Ford is making their customers very upset and Ford management doesn’t seem to care. You do need our business to make it. Ford should be grateful to have the business since they have had years of low sales. Your customers are getting fed up with Ford’s inaction and customer favoritism on building vehicles. You need to reach out to your customers and get their concerns out in the open. It is difficult for me to express how upsetting that this whole delayed ordering process is. It affects every one of us that has a new vehicle order in. That is not to mention your awkward and clumsy new vehicle shipping process. It’s pathetic when you take that long on shipping. What is that all about? It needs to be fixed. Also, what’s with 2 price increases in 2 months, just because you can. Not good. I can speak the truth because you can’t fire me but you can delay my order for many more months like you have been doing. Why some of your customers are still on board for a new Ford vehicle after the ridiculously long wait times is a complete mystery. Most customers will not want to wait that long. One good thing though is that my local Ford dealer has an excellent service department, so no complaints there. Nobody at Ford cares or will ever see this post, but I had to vent to keep my sanity.

    Reply
    1. Matt

      Lol you have issues. Maybe you should cancel your order if your so fed up.

      Reply
    2. imanjunk1963

      Hahahayes issues and did the commentor see C19 coming? OMG….uh NOPE!

      Reply
  3. lavell

    so this is for salaried workers and not the workers on the lines actually putting in work and loosing money on these layoffs what about the product workers like come on everyone has suffered

    Reply
    1. Joshua Heck

      Hourly workers are already getting a bonus 2x what they got last year. Senior management cannot screw with their bonuses, as its part of the union contract. They only have direct power over the salaried workers bonus amounts.

      Reply
      1. J

        That double the bonus of last year is if you weren’t laid off and had worked 40 hours every week. Our bonuses will not be double I can promise you that

        Reply
  4. Steve

    Why don’t you go buy an electric vehicle so that you can get run out of juice in a traffic jam. Why would Ford be advertising for $200 per month leases on F150s when there is no way that they can produce them. It’s crazy. And another thing: who decided that the new front and rear of the F150 look good. The 2013s looked better than that. I probably will cancel my order since Ford is soft. Time will show that the EV will cost Ford billions and could bring the company down. Have you looked at their stock lately? I still say quit making excuses. Ford should have a lot of leverage with the chip makers. If they don’t even bigger problems are looming. By the way I will buy any brand that I want. I have owned more Fords than most. I still say that a little customer service would go a long way. Like I said, nobody that matters will see my comments anyway since they don’t listen to their customers.

    Reply
  5. Jane Handimon

    All this did was tell the working levels their contributions aren’t “as valuable” as higher level managers. It is great they reversed it, that us not the message to send during a job-seekers market and when you want to attract talent.

    Reply
  6. Michael J. Micallef

    Just think 40 executives took a cut in their bonus to provide a 100% increase to the ( how many hundred or thousand) salaried workers under them. Think about it. As far as chips are concerned produce the chips themselves and, any over run market them to others.

    Reply
  7. John

    As a Ford employee impacted by the bonus “misstep”, an issue many in Ford are talking about is actually this: how is it a supposedly “always concerned and tuned in” group of Ford leaders who routinely go out of their way to talk about family, equity and so on, DIDN’T RECOGNIZE when they were shown the output of the formula that it might be a problem? Instead, they went ahead and published the outcome internally (and perhaps externally as well). For many inside Ford this tone-deaf scenario is either incompetence or intentional.
    It’s kind of like apologizing only after you’re caught……….Ford leadership may not be concerned at all, they were just caught demonstrating proof of it.

    Reply

Leave a comment

Cancel