Ford sets Captain Farley on course: Bonus program revamped

Ford Motor is undergoing a profound transformation to address the challenges of the modern automotive world. CEO Jim Farley has made it clear to employees that speed and quality are two key components that need to be optimized. As part of this reorientation, Farley has announced that manager bonuses will be more closely tied to these interim improvements in the future—specifically, they will be reduced by a third, according to sources familiar with the matter. Under a recently introduced performance strategy at Ford, future bonuses are to be directly linked to progress on key corporate goals. Farley announced the cuts during an employee meeting, referring to cultural changes that are gradually taking hold after 121 years of company history. Although Farley praised the progress made so far, he also expressed his dissatisfaction during the third-quarter earnings presentation on Monday that the company will only meet the lower end of its annual target. This announcement had an impact on the stock markets: Ford shares fell more than 10% the following Tuesday. A company spokesperson emphasized on Thursday the ambitions to realize the Ford+ strategy. The focus is on reducing costs, improving quality, and transforming into a company with stronger growth and margins. However, the extent of the bonuses may depend on performance in the fourth quarter.