DaimlerChrysler managersagree to lower salaries

12th August 2004, Comments 0 comments

12 August 2004 , STUTTGART - DaimlerChrysler's 3,000 top-echelon managers reached an agreement with the company Thursday for wage cuts and reductions in bonuses as part of their contribution towards helping the carmaker to lower its costs. The agreement, coming some three weeks after the company reached an acrimonious deal with factory employees, calls for a 2.79 percent reduction in the top managers' monthly salaries starting in 2006. In 2007, bonus packages comprised of a number of variables related to t

12 August 2004

STUTTGART - DaimlerChrysler's 3,000 top-echelon managers reached an agreement with the company Thursday for wage cuts and reductions in bonuses as part of their contribution towards helping the carmaker to lower its costs.

The agreement, coming some three weeks after the company reached an acrimonious deal with factory employees, calls for a 2.79 percent reduction in the top managers' monthly salaries starting in 2006.

In 2007, bonus packages comprised of a number of variables related to the company's 2006 performance, will be reduced by 10 percent, DaimlerChrysler said.

The deal is only for those managers working for DaimlerChrysler in Germany, the company said.

The salary restraint deal matches exactly the cutbacks which some 160,000 employees of the Mercedes Car Group previously agreed to under the company's drive to cut its costs by some EUR 500 million.

For its part, the executive board is also contributing to the cost cutting effort. Chairman Juergen Schrempp said that the board's salaries would be slashed by 10 percent. In 2003 the board's total earnings were EUR 40.8 million.

DPA

Subject: German news

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