Motorola cuts fat cat pay packs

STRUGGLING PHONE company Motorola has come up with a cunning plan to revive its business by reducing the amount it pays to top executives.

The outfit has also decided to free freeze pension plans for ordinary workers in the US. It will also temporarily suspending matching $401,000 contributions it makes to its two CEOs and reduce their base salary.

The moves are on top of an $800 million cost-saving plan which was announced in April. Analysts say that the new cost-cutting changes could save Motorola $100 million each year.

Salaries of an unknown number of other executives will be frozen although in some cases it will raise them in countries where it is "legally required or a competitive necessity", Motorola said.

Those who have retired will continue to receive a pension, but workers will not see any additional benefit accruals after March 1.

Co-CEOs Greg Brown and Sanjay Jha will lose a quarter of their base salary of $1.2 million each. Brown will also give up any 2008 cash bonus earned under the company's incentive plan.

Jha, who has a bonus as part of his contract, has voluntarily reduced his bonus although he will be taking restricted stock units as compensation. µ

L'Inq
AP