Ford Cuts Senior Manager Bonuses After Disappointing Earnings
- Executive bonuses will be reduced to 90%, internal memo says
- CFO said Ford would step up cost-cutting efforts considerably
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Ford Motor Co. is cutting the performance bonuses of its senior managers — including Chief Executive Officer Jim Farley — after the automaker said poor execution and supply snags led to disappointing results for the past year.
Executives will still receive bonuses, but the payouts will be reduced, according to an internal memo sent Friday to senior managers and viewed by Bloomberg. Instead of the 148% bonus executives qualified for under the company’s annual incentive compensation plan, based on targets like business performance and cash flow, they will receive 90% of their bonus.