Compensation Plan Outline Student: Professor: Institution: Course title: Date: Evaluating the existing compensation plan for Ford Motors Company Ford Motors Company has a compensation plan that is an Incentive Bonus Plan, which offers cash awards to all employees and members on the achievement of a particular performance goal, in a particular year (Yang, 2014).Ford has a pay-for-performance culture that motivates and rewards employees for achieving the anticipated business result. The benefits program supports security income and protection from catastrophic loss (SEC, 2014). This motivates their employees and retains the workforce, hence, reducing turnover. Their competitive compensation attracts, motivates, and retains high performing workforce through targeting the average competitive level of automotive and leading companies within the national market. The company measures competitiveness based on program value for employees relative to the comparator group. When the incentive programs cannot provide competitive compensation due to business conditions, Ford uses their short term and long term retention programs that ensures they retain key employees that can respond to the operational and financial challenges (Yang, 2014; SEC, 2014). The compensation plan for Ford is affordable to the company in mid-term and long-term, and the compensation plan is ensured not to fluctuate due to short term business conditions.