In a companywide e-mail to all employees on Wednesday, March 5, CEO Alan Mulally said that although Ford fell short of its sales goals for 2007, the automaker “met or exceeded” its objectives in every other category.
The bonus also will be paid to managers outside the U.S. and Canada. Mulally said the “performance awards” are based on improvements in cost performance, quality, automotive cash flow and financial results.
“The board of directors believe it is important to reward employees for delivering significant results and keeping the company on track to become profitable again by 2009,” Mulally’s e-mail said.
The bonuses will be paid this month.
Ford also said Wednesday that salaried employees’ merit increases, originally scheduled for April 1, will be delayed until July 1. Merit increases, unlike bonuses, are based on an individual’s performance for the present year.
Ford said hourly workers who worked at least 40 hours and were active employees through the end of last year will receive the bonus. Ford spokeswoman Marcey Evans would not say how much the bonuses will cost Ford.
Filed by Bernadine Williams of Automotive News, a sister publication of Workforce Management. To comment, e-mail email@example.com.