DETROIT—Fiat Chrysler Automobiles is deferring 20 percent of salaried workers' pay from April through June and CEO Mike Manley will have his salary cut by half as the company deals with the fallout of the coronavirus pandemic.
Manley said in a note to employees Monday that, starting April 1, he will receive half his normal pay for the next three months. The other 19 members of FCA's Group Executive Council will take a 30 percent cut.
FCA Group Chairman John Elkann and other members of the board of directors will receive no compensation for the rest of the year, an FCA spokesman said.
Manley said the company will ask most salaried employees globally who are "not impacted by local downtime plans" to take a 20 percent salary deferment. Manley said the process will vary by country and that "agreements may be required." The FCA spokesman said the salaried cuts will last three months. It wasn't immediately clear when the deferred earnings would be paid out.
The deferrals are aimed at avoiding layoffs of permanent employees, Manley said in the letter.
"Protecting the financial health of the company is everyone's responsibility and naturally starts with myself and the leadership of FCA," Manley said.
General Motors last took similar steps recently, disclosing a 20 percent deferral for salaried employees, though it said the cuts could last six months. It promised to repay the lost amount, with interest, by March 2021.