Nearly 10,000 managers at DaimlerChrysler’s Chrysler Group will receive bonuses in May as a reward for a profitable 2004, a company spokesman told the Associated Press (AP).
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The bonuses will go to 9,400 entry- to midlevel managers in all departments on May 31, spokesman David Elshoff reportedly said, adding that the bonus amount hasn’t been determined, but it will be a percentage of the manager’s salary based on corporate profits, warranty service costs and other factors. The bonus also will vary based on individual performance reviews, he said.
Bonuses are expected to be roughly 8.5%, AP said.
The news agency said the bonus likely will be substantially higher than the $US1,500 profit-sharing cheques Chrysler is distributing this month to hourly and administrative employees. Elshoff reportedly said Chrysler’s managers are responsible for continuing the company’s turnaround.
AP noted that Chrysler swung to a profit of $1.9 billion in 2004 after reporting a $637 million loss the year before.
Elshoff reportedly said the bonus plan for managers was approved in 2003, but no bonus was paid last year because of the company’s 2003 performance.
The Associated Press said the bonus plan for managers is different than the one for executives, who also are expected to get hefty payouts this year. For managers, only Chrysler’s performance is taken into account. For executives, the bonus amount is based on the performance of parent DaimlerChrysler AG.
AP noted that Ford also is planning to distribute modest bonuses to managers this year, even though its 2004 performance wasn’t as strong as Chrysler’s – Ford earned a pre-tax profit of $850 million in 2004.
Spokeswoman Marcey Evans told the news agency about 6,100 managers, from entry-level positions to executives, will get one type of bonus, while roughly 34,500 lower-level salaried employees in the United States and Canada will get another. Evans reportedly wouldn’t reveal the amount of either bonus.
Ford also is providing $600 profit-sharing cheques to hourly employees on Wednesday, Evans told AP.
