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Motorola bosses to go for 25% pay cuts

Source: PTI
December 18, 2008 16:09 IST
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Leading mobile phone maker of the US, Motorola, will undertake cost-cutting measures, including freezing pay hikes, while company's co-chief executives -- Greg Brown and Sanjay Jha -- would take a 25 per cent voluntary cut in their salaries.

Motorola would permanently freeze its US pension plans from March 1, 2009, preserving vested benefits accrued by employees and retirees but eliminating future benefit accruals.

."Employees would not receive a salary increase in 2009," a company statement said.

"Motorola co-chief executive officers Greg Brown and Sanjay Jha will voluntarily take a 25 per cent decrease in base salary in 2009," it noted.

"Motorola intends to continue to provide funding to meet its pension obligations to present and future retirees," it added.

Greg Brown will voluntarily forego any 2008 cash bonus earned under the Motorola incentive plan.

However, Sanjay Jha's employment contract provides for a guaranteed cash bonus for 2008.

His bonus will be voluntarily reduced by an amount equal to Brown's forfeited bonus while the remainder will be taken in the form of restricted stock units.

"The sustained downturn in the global economy requires that we take these difficult but necessary steps," Greg Brown and Sanjay Jha said.

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