Ford Reduces Several Managers’ Compensation Due To Excessive Expenses

Ford Motor Company has decisively eliminated stock bonuses for half of its managers to address declining profits and high costs, taking bold steps to enhance its financial situation.

The company has made it clear that nearly half of its managers will not receive stock bonuses this year. These bonuses, which have been consistently awarded in March for the past three years, are being withheld. Bloomberg reports that this decision will directly affect approximately 3,300 of Ford’s 76,000 U.S. employees.

Chief Executive Officer Jim Farley wants the performance this way because Ford predicts that earnings before interest and taxes will fall by $2 billion or more this year.

Ford has sought to rein in repair costs and other expenses that Farley says put the company at a seven to eight-billion-dollar disadvantage compared to its competitors.

The automaker also forecasts losses of up to $5.5 billion in its electric vehicle business this year, which it is revising after losing $5.1 billion on battery-powered cars last year. Ford aims to cut costs by $1 billion this year.

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