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Ford Execs to Defer Salary

But the company's CEO says Ford will have to do 'much more' to stave off layoffs.

Ford 5d7ba42d90fa5
AP File

According to a report by the Associated Press, Ford Motor Co.'s top 300 executives will defer 20% to 50% of their pay for at least five months as the company reacts to the coronavirus crisis. According to CEO Jim Hackett, this will start May 1.

Executive Chairman Bill Ford will forgo his salary for that period as well.

The Detroit Free Press says Ford is considering other cuts, which would include merit increases for employees, as it attempts to shore up cash and avoid layoffs. In a statement, Hackett added that "we need to do much more given the sharp drop-off in demand for new vehicles and the shutdown of our plants worldwide."

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