Ford’s chief executive Alan Mulally has agreed to take a 30% salary cut for 2009 and 2010, a memo to employees said.
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The announcement to employees in a memorandum obtained by Reuters came the day after the United Auto Workers agreed to allow Ford to make up to half its contribution to a union-aligned trust for retiree healthcare in company stock.
According to the report, the memo said Ford’s board had agreed to forego all cash compensation for 2009 while chairman Bill Ford agreed to take a 30% salary reduction for this year and next along with Mulally.
Bill Ford’s total compensation has been and will continue to be set aside and not paid until the automaker’s global auto operations return to profitability, the memo added.
Performance bonuses for global salaried employees and senior executives for 2009 that would have been paid in March 2010 would also be eliminated.
