By Nora Eckert
DETROIT, Feb 11 (Reuters) - Ford Motor CEO Jim Farley told employees in a town hall Wednesday that companywide bonuses would be set to 130%, according to four people familiar with the matter, as the automaker delivered on its goal to improve vehicle quality.
Farley told attendees that the higher payouts are mainly due to the automaker’s improved initial vehicle quality, which measures repairs in the first 90 days of ownership. Farley said the metric is the best it has been in a decade,
two of the people said.
Companywide bonuses at Ford are based on a set of metrics the company establishes each year. These define the baseline amount for which all salaried workers are eligible, with a figure of above 100% denoting that the company exceeded those metrics. Individual performance can increase or decrease that amount. The bonuses apply to Ford’s global salaried workforce, which includes approximately 75,000 workers.
The automaker ties its employee compensation to key metrics such as quality and financial performance, objectives that are reassessed every year. In 2023, the payouts were set to 84% and in 2024 they were set to 69%. The company's goals included EV sales and growth of vehicle connected services at that time.
The goals haven't been publicly disclosed for 2025, but they are roughly the same as 2024, according to a person familiar with the matter.
(Reporting by Nora Eckert; Editing by Mike Colias and Chizu Nomiyama )
