20,000 Ford Salaried Workers Get Both Raise, Bonus
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.
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.
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.
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

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →