Investing.com -- Ford Motor (NYSE:F) is set to withhold stock bonuses from about half of its middle managers this year, a move aimed at reducing costs and improving employee performance, as reported by Reuters, citing people familiar with the matter.
The decision is seen as the latest effort by CEO Jim Farley to trim the company’s excessive costs. The stock awards, typically disbursed in March, will now be selectively given to half of the middle management staff, as instructed to senior managers.
Over the last 12 months, Ford’s stock has seen a decrease of 23%, underperforming when compared to General Motors (NYSE:GM). The company spokesperson stated that the change in the bonus structure is part of the company’s focus on fostering a high-performance culture that acknowledges and rewards employees for their business contributions.
The decision to slash stock bonuses for middle management is seen internally as a strategic move to motivate an improvement in employee performance and is expected to contribute to the company’s overall cost-cutting efforts.
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