Ford Motor Co. CEO Jim Farley has announced that the percentage used to calculate bonuses for the company’s senior leaders, including himself, will be cut for 2022. This decision was made in light of the company’s “frustrating” earnings report the day prior. Farley noted that the salaried workforce is still scheduled to receive 148% of their bonus targets due to strong operating cash flow and improvements related to service warranties. However, the top executives’ bonuses will be cut to 90%. He also promised to provide more details about the annual incentive compensation plan for 2023 later this month.
The company reported a loss of $2 billion for 2022, and its full-year adjusted earnings of $10.4 billion were more than $1 billion lower than what they had forecasted in October. Farley attributed this to poor execution and higher-than-expected costs. He stated that the company still has a lot of work to do to improve execution and strengthen their business, and that they are committed to fostering a culture of excellence and taking accountability when their overall performance fails to meet expectations.
Ford Motor Co. is making a clear statement that they are committed to excellence and accountability by cutting the percentage used to calculate bonuses for senior leaders. This decision reflects the company’s dedication to improving their performance and meeting the expectations of their stakeholders. It also serves as an example to other companies that it is possible to take responsibility for poor performance and make the necessary changes to ensure future success.
The automotive industry is highly competitive and Ford Motor Co. is no exception. In order to stay ahead of the competition, Ford must continue to strive for excellence and accountability. This means continuously evaluating their performance, making necessary changes, and taking responsibility for any poor performance. By cutting the bonuses for senior leaders, Ford is showing that they are willing to make the necessary changes to ensure future success.
Ford Motor Co. is making a bold statement by cutting the percentage used to calculate bonuses for senior leaders. This decision is a clear indication that the company is committed to excellence and accountability. It also serves as an example to other companies that it is possible to take responsibility for poor performance and make the necessary changes to ensure future success. Ford must continue to strive for excellence and accountability in order to stay ahead of the competition and ensure future success.
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