ArvinMeritor Inc. is cutting base salaries of about 100 senior executives by 10 percent as it looks to conserve cash in response to “worsening economic conditions,” the auto parts supplier said recently.
These pay cuts come at a time when pressure is mounting on U.S. auto parts makers, reeling from sinking demand from automakers globally.
The car and truck parts maker also said it is cutting salaries of its 1,700 U.S. white-collar workers by 5 percent.
ArvinMeritor in December 2008 withdrew its fiscal 2009 outlook and said it was eliminating 1,500 jobs because of “continuing distress” in the global markets.
The 10 percent salary decreases for senior executives, which will be effective beginning January 16, apply to about 100 people including Chief Executive Chip McClure and Chief Financial Officer Jeffrey Craig.
McClure received a base salary of $1,120,833 for fiscal 2008, which marked a 4.5 percent increase from a year earlier.
ArvinMeritor said the pay cuts were intended to be temporary, but added there were no assurances on when the original salary rates would be reinstated.