Ford announced on Friday that, in an attempt to preserve as many jobs as possible through the coronavirus (COVID-19) crisis, its top executives would defer their salaries through at least October.
In a memo to employees, Ford said the top 300 executives will defer 20 to 50 percent of their salaries for at least five months, effective on May 1. Additionally, Bill Ford will defer his entire salary for the same time period.
Ford also said it was suspending the dividend paid to shareholders and accessing our credit lines for more than $15 billion in additional cash.
Additionally, ford said it would try to manage through the crisis without eliminating jobs. The company anticipates the employees to return once the crisis ends but if the effects on the economy and Ford go on longer than expected or are more severe, the company is prepared to take tougher actions.
Globally, the company is deferring merit-based salary increases, suspending overtime for salaried employees, and freezing all hiring for noncritical skill positions.
The company also will reduce schedules and compensation for people whose jobs can't be don at home. Others might be offered chances to take voluntary sabbaticals. Ford said it would continue to provide health insurance and paid time off for people exposed to the virus to cover a 14-day quarantine.