Feeds

Motorola to freeze pay rises, pensions

Co-CEOs take 25 per cent cut

Secure remote control for conventional and virtual desktops

Motorola has announced that many of its workers won't get pay raises next year, that it's freezing US pension plans, and that it's suspending contribution-matching for employee retirement funds.

The mobile maker's two co-CEOs have also agreed to have their base salary cut and will forgo a 2008 cash bonus.

Motorola's latest scheme to lower costs are on top of the $800m expense reduction plan it announced in October, which includes 3,000 layoffs. The company did not say how much it expects to save from the newly-announced actions.

"The sustained downturn in the global economy requires that we take these difficult but necessary steps," both CEOs apparently said in a statement.

Economy aside, Motorola's mobile division has been a drain on the firm for several years now with few successful handsets to show since the 2004 debut of its flagship Razr phone. In Q3, the company reported losses of $397m, with $840m in losses coming from the mobile division.

Beginning March 1, 2009, Motorola will "permanently freeze" its US pension plans. Motorola said it will preserve vested benefits accrued by employees and retirees, but eliminate future benefit accruals.

Beginning January 1, 2009, the company will also temporarily suspend all company matching contributions to the Motorola 401(k) plan in the US.

Employees in "many of the markets" Motorola operates in will not receive a salary increase in 2009.

Dual chiefs Greg Brown and Sanjay Jha will voluntarily take a 25 per cent decrease in base salary in 2009. Brown will also forgo his 2008 cash bonus. Jha's bonus will in turn be reduced by an amount equal to Brown's forfeited bonus, with the remaining bonus paid in restricted stocks.

Meanwhile, images of what could be Motorola's 2009 lineup have been leaked to the web and don't look half bad. Maybe there's a light at the end of the tunnel. ®

Intelligent flash storage arrays

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.