agent Entrepreneur logo
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

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →