Fiat Chrysler to Defer 20% of Salaried Worker Pay, CEO Taking 50% Pay Cut

By Nora Naughton

Fiat Chrysler Automobiles NV is asking salaried workers to defer a portion of their salaries in a cost-cutting move designed to avoid layoffs, according to a memo sent to employees Monday.

Chief Executive Mike Manley is also taking a 50% for the next three months while senior executives take a 30% cut, he said in the memo.

Fiat Chrysler agreed earlier this month to close its North American plants and send workers home in an attempt to curb the spread of the new coronavirus. The auto maker initially intended to re-open plants as early as this week, but extended the shutdown through April 14. Closing plants is an immediate hit to the bottom line, as car companies book revenue when vehicles are shipped to dealers from the factory.

Fiat Chrysler Chairman John Elkann and members of the company's board of directors have also agreed to forgo their remaining compensation for the year, Mr. Manley said in the memo.

Write to Nora Naughton at nora.naughton@wsj.com

(END) Dow Jones Newswires

March 30, 2020 18:41 ET (22:41 GMT)

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