Nearly 10,000 managers at DaimlerChrysler AG's Chrysler Group will receive bonuses in May as a reward for a profitable 2004, a company spokesman said Tuesday.
The bonuses will go to 9,400 entry- to midlevel managers in all departments May 31, spokesman David Elshoff said. Elshoff said 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 percent.
The bonus likely will be substantially higher than the $1,500 profit-sharing checks Chrysler is distributing this month to hourly and administrative employees. Elshoff said Chrysler's managers are responsible for continuing the company's turnaround.
"These are the people who will shoulder a good deal of the burden in continuing to drive us to a leadership position," Elshoff said.
Chrysler swung to a profit of $1.9 billion in 2004 after reporting a $637 million loss the year before.
Elshoff 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 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.
Ford plans modest bonuses
Ford Motor Co. 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 pretax profit of $850 million in 2004.
Spokeswoman Marcey Evans said 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 wouldn't reveal the amount of either bonus.
All the employees also will be eligible for merit raises, she said. Ford gave managerial bonuses in 2004 but didn't give them out the two years before that.
Ford also is providing $600 profit-sharing checks to hourly employees Wednesday, Evans said.
General Motors Corp. spokesman Mark Tanner said the company won't disclose any information on corporate bonuses until it files a proxy statement with the U.S. Securities and Exchange Commission in April. GM is distributing $195 profit-sharing checks to hourly employees this month.