That's right, big or small, blue collar or white — you're all getting bonuses. Here's a question — why? Oh wait, there's a letter here from FoMoCo CEO Alan Mulally. Maybe this'll explain it:
To: Employees in the U.S. and Canada
Subject: Performance Awards
One of my priorities is to bring us together as a team. Only as one team will we achieve what we all desire most - a new, more competitive and more viable Ford Motor Company that works for everyone.
So with the board's support, and the support of the UAW and CAW leadership, we're going to pay every eligible salaried and hourly employee in the U.S. and Canada, along with our executive leadership around the world, a performance award for 2006. Even employees who served through the end of last year and recently separated from the company by accepting a voluntary package offer are eligible.
Because we did not accomplish all of our objectives last year, the awards will be modest. Still, we want to recognize and reward...
...your accomplishments, because you made vital contributions to our future.
You significantly reduced costs. You continued to close the quality gap with our competitors. And you courageously began the job of restructuring Ford as a smaller company.
These awards underscore the importance of working together as a unified team. That's the only way we'll make more progress down the road.
Below are some answers to questions you may have about these awards.
It's pretty simple, actually. One team. One plan. One Ford Motor Company.
Congratulations. Let's keep moving forward together.
Alan
Q. How can the Company pay performance awards after losing a record $12.7 billion in 2006?
A. Last year, though we fell short of our profit and market share goals, we made significant improvements in quality and cost savings. We're recognizing these accomplishments with modest awards to encourage our continued focus on performance against objectives. Senior management believes pay that recognizes performance is a key to maintaining a skilled and motivated workforce.
Q. Who will receive a performance award?
A. All eligible salaried and hourly employees in the U.S. and Canada, including employees who served through the end of 2006 and recently separated from the company through a voluntary package offer. Outside of the U.S. and Canada, it will vary by country.
Q. How much money will employees get?
A. Award amounts will vary by employee level and location. In the U.S. and Canada, awards for hourly, GSR and LL6 employees will range between $300 and $800. LL5 and above employees will receive higher, but still modest, awards that will proportionately reflect the metrics that were achieved in 2006.
Q. When will the performance awards be paid?
A. The majority of the awards will be paid on Thursday, March 15.
Q. How did the company determine the amount of the awards?
A. The size of all the individual performance awards reflect the fact we made progress in quality and cost performance last year, but fell short of our profitability and market share goals.
Q. I thought hourly profit sharing and GSR/LL6 awards are based solely on profitability. Given our 2006 financial results, why are these being paid?
A. All of our employees contributed to the company's progress in 2006. We are all one team, working together to create a more competitive Ford Motor Company for the future.
Q. Are 2007 awards being considered?
A. Any potential performance awards for 2007 will be based on the company's 2007 performance. For the 2007 performance period, award compensation for all salaried employees in the U.S. and Canada will be based on the same set of metrics. One team. One plan. One Ford Motor Company.
Hmm, that's certainly a bold move. Personally, I like how he signs it "Alan." It's so very precious.
Related:
Breaking Not As Bad As Last Month! Ford February Sales Off 13%! [internal]