NEW YORK (AP) -- ArvinMeritor Inc. said in a regulatory filing that it's temporarily cutting the pay of its top executives by 10 percent, citing worsening economic conditions.
The Troy, Mich.-based auto supplier said in a late Monday filing with the Securities and Exchange Commission the pay cut applies to its chief executive, chief financial officer and several vice presidents, along with other members of the company's leadership.
ArvinMeritor, which makes parts for both commercial and light vehicles, said the pay cuts are intended to be temporary, but added it's unclear when original pay rates will be reinstated.
Like other auto suppliers, ArvinMeritor has seen its sales plummet this year as a result of the steep cuts in automotive production in both the United States and Europe.
In December, ArvinMeritor withdrew its fiscal 2009 guidance citing the ongoing turmoil in the auto industry. The company's shares lost 76 percent of their value in 2008, ending the year at $2.85.
Companies in other industries have also recently cut their executive pay in response to the economic downturn. Caterpillar Inc. announced plans in December to cut its executive compensation by up to 50 percent next year citing lower demand.