Motorola Freezes Pensions, Cuts Executive Salaries
Cellphone maker Motorola said today that it plans to permanently freeze its U.S. pension plans in response to the poor economic conditions across the globe.
The company also said it will temporarily stop matching 401(k) contributions and reduce the base salary of its two co-executives.
Greg Brown and Sanjay Jha, the company's co-CEOs, will take a 25 percent cut in their base salaries in 2009. Brown will also give up 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 will also be reduced voluntarily, according to the AP.
December 17, 2008; 10:05 AM ET
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