Motorola Announcement: Benefits, Executive Pay Cut in 2009
The company announced this morning that it would cut expenses in several ways.
We're getting used to layoff announcements, but this morning Motorola announced different kinds of cuts it was making to slash expenses in 2009.
Here's what they're doing:Motorola says it will permanently "freeze" its pension plans in the U.S. Benefits previously accured will be preserved, but the company is eliminating future accruals.It's temporarily suspending the 401(k) match. Employees can still contribute, but the company won't match contributions.Many employees will not see pay raises. Motorola says "employees in many of the markets in which it operates will not receive a salary increase in 2009."Salaries for the company's co-chief executive officers, Greg Brown and Sanjay Jha, will be cut (voluntarily) by 25 percent. Brown is forgoing any cash bonus earned this year and Jha will voluntarily reduce his guaranteed bonus by the amount Brown is giving up. Jha will take the rest of his bonus in restricted stock units.
The company announced at the end of October it would layoff 3,000 employees as part of an $800 million savings plan. Cost savings announced today are in addition to that plan, Motorola says.