GM bonuses could go down this year as tariffs take a toll.

The Detroit Free-Press reports:

“Many in General Motors’ salaried workforce could see dramatic cuts to their bonus checks paid out next month due to the impact of tariffs and other factors that affected the company’s 2025 financial performance.

GM’s bonus program is dependent on both an employee’s performance and the company’s. The automaker, which reported fourth-quarter and full-year 2025 earnings on Jan. 27, fell short of the performance targets it hit in 2024. Therefore, GM will use a smaller multiplier to calculate bonus payouts for salaried workers, two people confirmed to the Detroit Free Press. The people asked not to be identified because they are not authorized to speak to the news media.

Those sources also said that GM informed its salaried workforce on Jan. 27 that the bonus percentage in its formula that determines employees’ bonuses will be a multiplier of 114% ― a significant drop when compared with last year’s 144%.

What that 114% multiplier means for a salaried employee who has a base salary of $100,000, in a salary category that earned a 13% bonus, is they could receive a bonus of about $14,820 compared with the previous year when that person would have received a bonus of $18,720 at 144%. The calculation assumes that employee met their own performance objectives. A source familiar with GM’s plan confirmed those figures.”

For the rest of the story, visit the Detroit  Free-Press here.