Will GM and Chrysler Copy Employee Bonuses From Ford?
Ford (NYSE:F) has already announced some 20,000 white collar employee raises and bonuses for April, but their GM (NYSE:GM) and Chrysler counterparts will need to wait until February to see if they are so fortunate. Officials from both companies say that they holding back that decision until fourth quarter and year-end financial statements are released; that date will be February 1st for Chrysler.
Ford might have been motivated to increase its compensation to be in line with other Fortune 500 companies in order to retain mid-level employees. However, there is no evidence that GM and Chrysler feel the same pressure, or at least are reacting the same way if they are. The economic recovery has not yet removed that many suitable potential employees from the unemployment lines.
Corporate performance is still the 800-pound gorilla for many companies when they decide whether to increase compensation. Of these three companies Ford was the only one to avoid bankruptcy during the recent meltdown. GM, however, made $1 billion more money in the first three quarters than Ford, and since coming out of bankruptcy in 2009 Chrysler has not yet seen a full-year profit.