Lear says it is taking new measures to address industry conditions created by the Covid-19 pandemic.
In addition to previously-announced actions to strengthen its balance sheet and improve financial flexibility, Lear will be implementing the following compensation-related actions, effective 16 April:
There will be a temporary 20% salary deferral for all US and Canadian salaried employees.
- In addition to a 20% salary deferral, Lear CEO and president, Ray Scott's salary will be reduced by 10% and other named executive officers' salaries will be reduced by 5%, in both cases for the remainder of 2020. Deferred compensation for the CEO and other named executive officers will not be paid until certain financial targets are achieved by the company or before all other employees have been paid all owed deferred compensation. Reduced salary will not be paid at a later date
- Lear Board of Directors cash retainer fees will be reduced by 25% for the remainder of 2020
Further salary reduction measures are also being taken in Europe, Asia, Mexico and South America.