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Fiat Chrysler salaries deferred by 20% during coronavirus


Temporary pay cuts are planned for Fiat Chrysler Automobiles executives, and the company’s salaried employees will have part of their pay deferred as FCA tries to navigate the effects of the coronavirus pandemic.

In an email sent to employees Monday, CEO Mike Manley laid out a vision of “shared sacrifice” as the company’s production plants in North America remain shut down. Manley said the moves related to pay are necessary to avoid laying off any permanent employees in the next quarter, which starts Wednesday.

The email, a copy of which was obtained by the Free Press, says salaried workers not affected by the downtime will take a 20% pay deferment.

That covers a little over 15,000 employees in the United States. The money is to be paid back to employees by March 15, 2021.

Manley said he will take a 50% cut in his salary over the next three months, and temporary cuts would also apply to members of the Group Executive Council, which is made up of top company leaders. In addition, FCA Chairman John Elkann and members of the board of directors have agreed to forgo any remaining compensation for the year. 

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Mike Manley, the CEO of Fiat Chrysler Automobiles, talks to automotive journalists during a round table question and answer session at the FCA display during the North American International Auto Show media previews at Cobo Center in Detroit on Monday, January, 14, 2019.

“Protecting the financial health of the company is everyone’s responsibility and naturally starts with myself and the leadership of FCA,” Manley said in the email. “So, to help achieve this and to avoid the layoff of any permanent employees for the coming quarter, starting April 1 for the next three months I will take a 50% cut in my salary and the Group Executive Council (GEC) will all take a 30% cut. We will also ask most global salaried employees not impacted by local downtime plans to take a temporary 20% salary deferment as part of this shared sacrifice.”



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