Fiat Chrysler Automobiles is deferring 20 percent of salaried workers’ pay until June while CEO Mike Manley endures a 50-percent cut to his annual earnings. With the pandemic still attempting to grip more of North America, this was to be expected. Other domestic nameplates have already issued notices of deferred payments to executives staffers, noting that additional measures would likely need to be taken if COVID-19 fails to recede in the coming months. Seeing the writing on the wall, FCA seems to have jumped straight into phase two.
According to Automotive News, FCA Group Chairman John Elkann and other members of the board of directors will receive no compensation for the rest of the year. A company spokesperson clarified that this is not a deferment but a forfeiture of payment, adding that other salaried employees would only be losing a portion of their salary to be reimbursed after the outbreak subsides.
Ford is engaging in a similar plan that seeks to defer 25-50 percent of salaried pay for about 300 employees. General Motors followed closely behind, announcing a similar 20-30 percent deferral last week. The General is also operating under the assumption that factory shutdowns will last longer than than Ford or FCA seem to believe by suggesting deferments would last six months. While the plans all deal with who has to wait on their back pay a little differently, they each start by making the biggest cuts at the top. Though FCA is arguably asking the most from its management board by nixing its compensation for the remainder of 2020.
From Automotive News:
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 [a letter to FCA staff].
[Image: Daniel J. Macy/Shutterstock]
From the internet site Paywizard.org
Michael Manley
CEO – Fiat Chrysler Automobiles
Born: 1964 England
Annual: $14,000,000.00
Monthly: $1,166,666.67
Weekly: $269,230.77
Daily: $53,846.15
FCA average daily salary for an experienced US assembly line worker $240.
So Mike Manley gets paid 224x that of a line worker. He’s easily putting up with more crap than that.
If you’re suggesting he is overpaid, talk to the Board of Directors.
Same thing with professional athletes and actors – I don’t care how much they make. If you don’t like it, don’t buy the product.
Your point is what? Aside from one function, what does the assembly line worker do to sell, create, or develop products that keep the factory open where he is employed?
While it is a nice leftist trap to bring things down to the worker level, the fact remains that no one is stopping said worker from developing his own car company and then to have the obligation of keeping the doors open for the workers underneath him.
This trap is a well-tired one. And that worker doesn’t have to worry about anyone else’s job but his own.
Yeah My company’s CEO makes way more than I do. I am perfectly fine with that. He can’t do my job and I can’t do his, but at the end of the day I enjoy mine and his looks to be a real PITA. He has kept all of us getting paid though so he’s doing something right.
Here is a news flash…Life is like the drag strip. You throw some new mods at your car, take it out on grudge night, get a few wins and then…bam…somebody in a primer Camaro that seems to barely run gaps you. Rule 1 at the track…somebody is always faster than you. Rule 1 in life…somebody always makes more money than you. Be happy with both or you will end up broke and miserable.
@Art. There is a whole lot of wisdom in your statement. I’m as solidly middle class as it gets and perfectly happy there. Twice retired, no debt and no headaches.
Wow! His weekly salary makes yearly engineering salary in Silicon Valley. And they told us that England is a socialist country with small variance of compensation between ordinary workers and executives.
The place where I work is doing some layoffs. I’d rather we all take a pay cut and keep everyone, but no one’s asking my opinion.
Welcome to the club! Yearly layoffs are the favorite pastime in America. In every company I worked every year there were layoffs and then hiring frenzy. Only the best could survive.
I’m sure his IQ is 224x that of a line worker, he works 224x as many hours and probably takes 224x fewer potty breaks.
The Board was lucky to find someone like him.
When Sergio died, FCA found Manley down the hallway in company headquarters. Chances are, he’s being paid what Sergio was paid, minus the bonus money Sergio got for keeping Fiat alive by buying Chrysler for a song.