Motorola, Inc. today announced additional actions to further reduce costs amid continuing global economic challenges. The measures include changes to employee compensation and benefit programs as well as changes to executive compensation.
As part of the overall cost reduction plan, employees in many of the markets in which it operates will not receive a salary increase in 2009. In addition, Motorola co-chief executive officers, Greg Brown and Sanjay Jha will voluntarily take a 25% decrease in base salary in 2009.
Greg Brown will voluntarily forgo any 2008 cash bonus earned under the Motorola incentive plan. Sanjay Jha's employment contract provides for a guaranteed cash bonus for 2008. His bonus will also be voluntarily reduced by an amount equal to Greg Brown's forfeited bonus and the remainder will be
taken in the form of restricted stock units.
In addition, Motorola is revising its employee compensation and benefit programs across the company. Effective March 1, 2009, to better align with industry norms, Motorola will permanently freeze its U.S. pension plans, preserving vested benefits accrued by employees and retirees but eliminating future benefit accruals.
Effective January 1, 2009, Motorola also will temporarily suspend all company matching contributions to the Motorola 401(k) Plan. U.S. employees may continue to contribute to the 401(k) plan, but will not receive matching contributions from Motorola.
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