The world’s largest tire and rubber company announced on June 22 that, effective immediately, its Japan-based corporate officers would take a voluntary reduction in compensation. Bridgestone Corporation stated that it continues to take a “thoughtful and measured approach” during the coronavirus pandemic, in protecting the long-term health of the company and minimizing the adverse effects to its employees and business.
The voluntary pay cuts will be as follows: 30% reduction of monthly base compensation for a Representative Executive Officer. 20% reduction of monthly base compensation for an Executive Officer and 10% reduction of monthly base compensation for a Vice President and Officer.
Bridgestone says these voluntary measures will remain in place until the end of this year and are in line with similar initiatives taken by the company’s officers throughout global operations. The company will continue to monitor the COVID-19 situation and its impact to employees and operations around the world, adjusting its response plans as necessary and taking appropriate action.
Bridgestone explained that the total compensation for the company’s corporate officers includes fixed, monthly base compensation and variable compensation. This variable compensation is based on the company's financial performance for the fiscal year. The voluntary reduction in compensation will be applied to the fixed, monthly base compensation for each corporate officer.