Under pressure | Ford cuts bonuses for middle managers as part of cost-saving drive

Ford is scaling back stock bonuses for middle managers, with about half of eligible employees set to lose out on the incentive.

The move is part of CEO Jim Farley’s broader cost-cutting strategy aimed at improving efficiency and streamlining operations. Senior managers will now determine which of their middle management staff will receive stock grants this year.

Stock awards, traditionally distributed in March, are a key component of Ford’s performance-based compensation system. While the company says the change is meant to reward top performers, it aligns with Farley’s ongoing efforts to reduce costs and drive profitability amid financial pressures.

Ford performance dip

Despite reporting a $5.9 billion net income for 2024 - a 37% increase year-over-year - Ford anticipates a decline of up to 31% in adjusted operating profit for 2025.