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Motorola cuts executive pay, freezes employee pension

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Schaumberg-based Motorola announced in December that it would cut executive pay and freeze pension contributions to control costs.

Co-chief executives Greg Brown and Sanjay Jha said they would trim their own base salaries by 25% in 2009. Brown also agreed to forgo his 2008 cash bonus, while Jha agreed to take a reduced bonus as restricted stock.

Motorola officials indicated the company would freeze salaries of many employees in 2009.

As of Jan. 1, Motorola will also temporarily suspend its matching contributions to employees’ 401(k) plans. Brown and Jha said in a statement, “The sustained downturn in the global economy requires that we take these difficult but necessary steps.”

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