Ford CEO Jim Farley saw his total compensation decline by 6.1% in 2024, totaling $24.9 million. According to the automaker’s 2025 proxy statement published on Thursday, the automaker struggled to meet key performance targets. Despite the decrease, Farley’s pay remained significantly higher than the median Ford employee salary of $98,273.
Farley’s base salary remained unchanged at $1.7 million. Most of his compensation came from stock awards, valued at $20.6 million, though their actual worth will depend on Ford’s stock performance when they vest. His bonus package, however, was cut by 33% to $1.6 million.
Ford missed several financial and operational targets in 2024, reducing the overall compensation of Farley and other executives. The company achieved only 90% of its earnings target and 88% of its global EV retail sales goal. Most notably, Ford did not meet its quality objective, a factor that has remained a significant challenge for the automaker.
As a result, Farley’s performance factor stood at 69%, impacting his nonequity incentives, which fell by $780,300. Other compensation, including private aircraft use and company vehicles, declined 56% to $898,000 due to reduced travel and lower tax reimbursements.
Despite the setbacks, Ford reported a strong financial year, posting a 37% increase in net income to $5.9 billion, up from $4.3 billion in 2023. The company also distributed profit-sharing bonuses of approximately $10,208 to about 57,000 hourly employees.
Other Ford executives saw varying changes in their compensation:
- Executive Chair Bill Ford earned $20.4 million, down 1.1% from 2023.
- Vice Chair John Lawler, formerly CFO, earned $9.4 million, a 6.6% decrease.
- Chief EV, Digital, and Design Officer Doug Field’s pay rose slightly to $15.5 million.
- Former Ford Integrated Services President Peter Stern earned $10.8 million before leaving the company in late 2024.
The company also adjusted its stock award structure in 2024, reducing the number of middle managers eligible for equity-based compensation.
Ford continues to adjust its EV strategy, cutting production and canceling select models in favor of hybrids and more affordable offerings. Quality improvements remain a priority, as the company aims to reduce warranty costs and improve vehicle reliability.
The automaker will virtually hold its annual shareholders meeting on May 8, where further discussions on executive compensation and business strategy are expected.
