Ford CEO Jim Farley, along with his executive management team, will take a cut in bonus pay linked to performance goals, he told employees less than 24 hours after the 2022 earnings report was released. In a memo emailed to staff Friday, and signed by Farley and Chief Financial Officer John Lawler, the Ford team at the top is leading by example on performance accountability. Salaried workers not ranked as senior managers will not be impacted by the change in bonus structure. "Yesterday, we reported our 2022 full-year performance . The results showed that, while we have made solid progress in many areas of our Ford+ plan, we underperformed on earnings before interest and taxes (EBIT), falling short of our full-year financial guidance by more than a $1 billion," said the letter obtained by the Free Press. "This was in large part due to our continuing issues related to cost, quality and supply-chain management. " 65,000 salaried workers affected Every Ford employee has an annual target bonus based on their wage, personal performance and company performance goals. So, if an employee knows they've hit 100% of their performance objectives, they get their full bonus. The senior leadership bonus will be cut from 148% to 90%. Ford declined to provide a total number of senior managers but a source with knowledge of the situation confirmed the cut affects a few hundred people. The rest of Ford's salaried workers are eligible for 148% of their performance bonus, based on their personal objectives. Ford declined to reveal salary ranges or bonus sums. Ford has about 65,000 global salaried employees, and a vast majority will receive a full bonus, company spokesman Ian Thibodeau confirmed to the Free Press. Three tiers of senior leadership levels saw cuts: LL1 (executive team, including Farley and Lawler), LL2 and LL3. The letter continued: "Based on the targets set for our 2022 Annual Incentive Compensation Plan, the global Business Performance Factor finished the year above plan at 148%. This was largely driven by strong operating cash flow and net improvements in our quality objective led by three months in service warranty improvements , albeit starting at relatively low levels, which offset underachievement. " The email echoed what Farley and Lawler told industry analysts and shareholders Thursday: that earnings results show Ford still has a lot of work to do. "We are committed to fostering a culture of excellence, and taking accountability when our overall performance doesn’t meet expectations," the email said. More: 2008 financial crisis steers Ford's focus as it braces for 2023 "This decision was not made lightly, but accountability starts at the top," Farley wrote. "Our senior leaders have a significant impact on driving the business results and must live up to the high standards we need to create a vibrant, profitably growing Ford. " Falling short While the Dearborn automaker "fell short" of its execution and financial goals, the email said, the company is making progress toward "a breakout year for Ford. " Farley and Lawler urged employees to "execute with excellence. " Thibodeau told the Free Press: "Ford’s senior leadership decided this was the right thing to do, given our performance last year. Like John and Jim said, we have a lot of work to do to strengthen our business, and those affected by the adjustment have a key role in driving our results and the transformation of our business. ” The next Ford global town hall will be Thursday, when Farley will update employees on future initiatives. One year ago, Ford triggered a backlash among employees angry over a controversial bonus formula viewed as unfair to lower paid workers — a plan announced by Ford Blue President Kumar Galhotra, which Farley reversed. In that case, Ford executives ended up taking a bonus cut, too. It was the first internal unrest since Farley took the helm on Oct. 1, 2020. More: How inflation and taxes hit giant profit-sharing checks for autoworkers More: Ford CEO Jim Farley gets $22,813,000 compensation package in 2021 More: GM salaried workers should expect smaller bonuses: How formula works Contact Phoebe Wall Howard: 313-618-1034 or phoward@freepress. com. Follow her on Twitter @phoebesaid . .