Motorola to freeze pension plans, cut exec pay
SCHAUMBURG, Ill. (AP) – 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, Ill.-based Motorola Inc. said Wednesday it will also 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 will also 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 will also be reduced voluntarily.
The company says it is taking these measures to address the global economic turmoil.
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