Cell phone maker Motorola says it will permanently freeze its U.S. pension plans, temporarily suspend matching 401(k) contributions and reduce the base salary of its two co-executives.
Schaumburg, Illinois-based Motorola Inc. said Wednesday it also will freeze the salaries of an unspecified number of other employees in many of its markets.
Co-CEOs Greg Brown and Sanjay Jha will take a 25 percent cut in their base salary in 2009. Brown also will forgo any 2008 cash bonus earned under the company's incentive plan. Jha's employment contract provides for a guaranteed cash bonus for 2008, but it also will be reduced voluntarily.
The company says it is taking these measures to address the global economic turmoil.