ArvinMeritor Gains After Announcing Executive Pay Cut
6/1/09
Source: http://www.bloomberg.com/apps/news?pid=20601103&sid=a4fY8pTPie8A&refer=us
ArvinMeritor Inc., a U.S. auto-parts maker, rose 48 percent a day after the company said executives including Chief Executive Officer Charles McClure will receive temporary pay cuts of 10 percent to their base salaries due to “worsening economic conditions.”
ArvinMeritor, based in Troy, Michigan, climbed $1.28 to $3.95 at 4:15 p.m. in New York Stock Exchange composite trading, the biggest jump since the company was formed in July 2000. The shares fell 76 percent last year.
Executives including the company’s CEO, chief financial officer and president of the light vehicle systems division will have temporary decreases starting on Jan. 16, according to a filing yesterday. The move is part of general cost cutting, the company said.
Separate filings yesterday also showed 6 executives received 868,000 ArvinMeritor shares as part of annual compensation grants. The executives have to hold the stock for three years.
