GM Salaried Workforce Faces Reduced Bonus Payouts for 2025

Unmet business targets blamed for smaller bonus checks this year

Jan. 27, 2026 at 2:31pm

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General Motors has informed its salaried global workforce that bonus payouts for 2025 will be significantly lower than the previous year. The automaker fell short of its performance targets in 2025, resulting in a lower multiplier being used to calculate bonuses. Many salaried employees could see their bonus checks drop by over 20% compared to 2024.

Why it matters

GM's bonus program is tied to both individual and company performance. The reduced bonuses highlight the impact of factors like tariffs and other market conditions that affected GM's 2025 financial results. This news is significant for GM's salaried workforce, who rely on these bonus payouts as part of their overall compensation.

The details

GM told salaried employees that the bonus percentage multiplier in the formula that determines their bonuses will be 114% - a significant drop from the 144% multiplier used in 2024. For an employee with a $100,000 base salary, this means their bonus could drop from $18,720 to around $14,820. The lower multiplier was driven by GM falling short of its performance targets, with the company reporting a 15% decline in full-year earnings before interest and taxes compared to 2024.

  • GM reported its Q4 and full-year 2025 earnings on January 27, 2026.
  • Bonus checks are typically included in salaried employees' paychecks in February.

The players

General Motors (GM)

An American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services.

Kevin Kelly

A GM spokesman who declined to comment on the bonus reduction for this story.

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What’s next

Bonus checks are expected to be included in salaried employees' paychecks in February 2026.

The takeaway

This bonus reduction highlights the challenges GM faced in 2025 due to factors like tariffs, and the impact it has on the compensation of the company's salaried global workforce. It underscores the importance of a company's financial performance in determining employee bonuses.