FCA executives, salaried employees to take pay cuts during COVID-19 pandemic

Fiat Chrysler Automobiles (FCA) top executives and salaried workers aroundthe globe will take pay cuts in an act of "shared sacrifice"brought on by the coronavirus pandemic that has shuttered theautomaker's plants in Europe and North America, according to acompany memo seen by Reuters.

CEO Mike Manley said in the memo he willtake a 50 per cent pay cut for three months starting April 1,while chairman John Elkann and FCA's board of directors willforego the remainder of their 2020 compensation. FCA said mostglobal salaried employees will be asked to take a temporary 20per cent pay cut.

"Protecting the financial health of the company iseveryone's responsibility and naturally starts with myself andthe leadership of FCA," Manley wrote.

Members of the automaker's group executive council will alsotake a 30 per cent pay cut, according to the memo.

Last week, number one U.S. automaker General Motors said it planned to keep its plants closed indefinitely and wasreducing the pay of salaried employees and executives andsuspending some future product programs to conserve cash.

GM's chief executive and chief financial officer issued astark warning to company employees in an internal video, sayingthat "significant austerity measures" were needed to preservethe company'slong-term viability.

To save cash, Fordalso said it wastemporarily cutting top executives' salaries.