Motorola Cuts Deep on CEO Salary, Pension Freeze
Ending 401(k) contributions
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.
Copyright Associated Press / NBC Chicago