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Ford, a day after convincing its union to accept concessions, said its top two executives will take a 30 per cent pay cut and salaried workers will forgo 2009 bonuses, according to a company memo.
The memo from executive chairman Bill Ford and chief executive Alan Mulally yesterday said Ford's board "voluntarily agreed" to forego all cash compensation.
Bill Ford said his total compensation will continue to be set aside and not paid until the company's worldwide operations return to profitability. Ford's board awarded him deferred compensation last year, which will now be cut by 30 per cent.
"We know these are challenging times and we all are affected by the tough actions we are taking," Ford and Mulally wrote in the memo.
Ford, which lost a record US$14.6 billion ($28.5 billion) last year, revealed the sacrifices by salaried workers as the United Auto Workers (UAW) union prepares to vote on a deal that cuts pay to laid-off workers and reduces by half the amount of cash the company must contribute to a healthcare trust for hourly employees. The UAW aims to complete the vote by March 9.
Ford, the only US carmaker to forego federal aid, is trying to conserve cash.
- BLOOMBERG
