The day after Ford and the UAW reached a tentative retiree health care deal (General Motors and Chrysler are still negotiating), the leaders of the Dearborn, Michigan, automaker have announced that they will be taking a 30 percent reduction in salaries over the next two years. A memo, signed by Ford Executive Chairman William Ford Jr. and Chief Executive Alan Mulally, addresses the pay cuts and adds that Ford's board of directors will also drop their compensation for the same period of time. In addition, performance bonuses for salaried workers and senior executives will also disappear.
As reiterated in the memo, Ford and Mulally are not wavering from their plan to go without government assistance and these recent announcements support that strategy. "We know these are challenging times and we all are affected by the tough actions we are taking... However, these are necessary actions to help us emerge as an even stronger, profitably growing Ford Motor Company for the benefit of us all." Thanks for the tip Adam!
[Source: WSJ.com | Image: Bill Pugliano/Getty]