P&A Providers & Administrators
MenuMENU
SearchSEARCH

20,000 Ford Salaried Workers Get Both Raise, Bonus

January 19, 2012
3 min to read


Ford salaried workers will receive both merit raises and bonuses this spring for the first time since 2008, reflecting the automaker's growing financial strength.


Letters went out last week to about 20,000 salaried workers around the world with the good news, spokeswoman Marcey Evans confirmed.

Ad Loading...


The 2.7 percent base salary increases will take effect April 1, according to the letter obtained by the Free Press. Ford declined to discuss the size of the white-collar bonuses. The amount is based on performance and financial metrics that are still being calculated.


Last year, the average Ford salaried worker received a bonus equal to 15.5 percent of his salary, according to Sean McAlinden, an economist with the Center for Automotive Research.


Senior executives, including President and CEO Alan Mulally, Executive Chairman Bill Ford and Mark Fields, president of the Americas, received bonuses greater than their salaries, according to Ford's 2011 proxy statement. Mulally has said Ford's pretax operating profit for 2011 will exceed 2010's $8.3 billion.


Last year, Ford salaried workers received bonus checks, but no merit raises. In 2010, they received only merit pay raises. There were no raises in 2009.


Ford paid its UAW workers a profit-sharing check that averaged $5,000 in March 2011 for the company's 2010 results. Then, as part of the new four-year agreement ratified last fall, Ford's 40,600 UAW workers received in December profit sharing averaging $3,252, based on the company's North American profits in the first half of 2011. That was in addition to a signing bonus, competitive bonus and inflation protection lump sum.

Ad Loading...


In March, the hourly workers likely will get a second profit-sharing check based on North American profits in the second half of 2011.


Last year, Ford withheld merit raises because management determined compensation for its white-collar workers was competitive with 23 other companies Ford had benchmarked, including General Motors.


The increased compensation is "in line with Ford's commitment to provide competitive base salaries and profitable growth for all," Fields said in the letter.


Salaried bonuses are tied to a complicated formula that factors in such metrics as profits, market share, cost and quality.


Ford is expected to release its fourth-quarter and full-year financial results later this month.

Ad Loading...


Salaried bonuses are paid under the company's Annual Incentive Compensation plan. The global plan covers about 20,000 employees in the U.S. and Canada, as well as managers in other parts of the world.


Ford is also increasing the amount it matches in employees' Savings and Stock Investment Plans, the letter says.


In 2010, Mulally received a $9.45 million cash bonus on top of his $1.4 million salary.


Bill Ford received a $2.7 million cash bonus to augment his $1.4 million salary, compensating in part for declining a salary from 2005-07.


Fields was paid about $1.34 million in salary and given a $3.6-million cash bonus in 2010.

More Industry

Two businessmen shaking hands in front of a vehicle
Industryby Hannah MitchellSeptember 8, 2026

First-Half Dealership Deals Up

Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.

Read More →
Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Ad Loading...
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
Ad Loading...
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Ad Loading...
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →