A day after a “frustrating” earnings report, Ford Motor Co. CEO Jim Farley told employees in a letter that he is cutting the percentage used to calculate bonuses for senior leaders including himself.

The letter, co-signed by CFO John Lawler and obtained by Automotive News, explained that for 2022, the company’s salaried work force is scheduled to earn 148 percent of their bonus targets, largely due to strong operating cash flow and improvements related to service warranties. Top executives’ bonuses are being cut to 90 percent, he said.

“This decision was not made lightly, but accountability starts at the top,” Farley said in the note. “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.”

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