Tokyo – Bridgestone Corp.'s top executives have agreed to take cuts of up to 30 percent in their compensation packages for fiscal 2020 in line with the company's efforts to deal with the economic impact of the Covid-19 pandemic.
The cuts start at 10% of the monthly base compensation for those at the vice president and officer level, Bridgestone said, and then rise to 20% for executive officers and 30% for representative executive officers.
These voluntary measures – which affect the fixed, monthly base compensation for each corporate officer – will remain in place until year-end, Bridgestone said, without disclosing how many employees this affects nor the expected economic impact of the action to be.
This latest action is aligned with similar measures taken by Bridgestone officers throughout the company's global operations. Bridgestone will continue to monitor the Covid-19 situation and its impact to employees and operations around the world.
The company said it will adjust its response plans as necessary and take appropriate action to promote the well-being and safety of its employees, while also addressing the needs of customers.
The action will not affect the corporate officers' variable compensation, which is based on the company's financial performance for the fiscal year.
The company continues to take a "thoughtful and measured" approach in protecting the long-term health of the company, while minimising the adverse effects to its employees and business.