Ford Motor (F.US) Cuts Stock Bonuses for Some Managers Amid Sliding Profits and High Costs

Ford Motor (F.US) will cancel some stock bonuses for mid-level managers to improve performance as the automaker faces a profit decline and high costs. The company has informed employees that about half of the 3,300 mid-level managers will not receive stock bonuses, which are typically awarded in March and vest over three years. Ford has about 76,000 salaried employees worldwide. Chief Executive Jim Farley is urging employees to improve performance as the company expects its pretax profit to decline by $2 billion or more this year. "We are committed to driving a high-performance culture, recognizing and rewarding employees who contribute to the company," Ford said in a statement on Tuesday. Ford has been trying to control warranty costs and other expenses, which Farley said have cost the company $7 billion to $8 billion more than its competitors. Ford also expects its electric vehicle business to lose up to $5.5 billion this year. The company lost $5.1 billion on its electric vehicle business last year and is currently overhauling the business. Ford plans to cut $10 billion in costs this year. On Feb. 5, Farley told analysts on a fourth-quarter earnings call: "We are focused on closing the competitive gap in the next few years. We are changing our culture to focus on quality and holding all engineering teams and leadership accountable."