Ford Motor Company's CEO Jim Farley received a significant pay raise in 2025 despite the automaker setting a historic recall record. The increase was tied to quality metrics, raising questions about alignment with investor interests.
- Jim Farley's 2025 compensation increased to $27.5 million, the highest since he became CEO in 2020.
- The pay raise was driven by hitting 130% of bonus targets, including 200% on quality metrics for newer vehicles.
- Ford's internal quality metrics show improvement, but third-party data like J.D. Power's study indicates performance below the industry average.
- The automaker's stock has underperformed the S&P 500, declining 13% over the past decade.
- Ford is using AI and rigorous inspections to address quality issues and reduce warranty costs.
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