ArvinMeritor is cutting basic salaries of around 100 senior executives by 10% as it looks to conserve cash in response to “worsening economic conditions”.
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The supplier is also cutting salaries of its 1,700 US white collar workers by 5%, Reuters reported.
ArvinMeritor last month withdrew its full-year guidance “due to continuing distress in the global markets and the uncertainty associated with projecting production volumes in the second half of the fiscal year”.
For the first quarter of fiscal year 2009, ArvinMeritor said it expected to generate US$50m to $58m of EBITDA on just over $1bn in sales, before special items. It also said it was eliminating 1,500 jobs because of “continuing distress” in global markets.
The 10% salary chops for senior executives, effective from 16 January, apply to about 100 people including chief executive Chip McClure and chief financial officer Jeffrey Craig, according to Reuters.
McClure received base salary of $1,120,833 for fiscal 2008, up 4.5% year on year.
ArvinMeritor reportedly said the pay cuts were planned as temporary but gave no assurances on when original rates would be restored.
