United Rentals CEO cuts own pay
16 January 2009
Michael Kneeland, chief executive officer of United Rentals in the US, asked for a 20% reduction in his salary. The compensation committee of the company's board approved the cut and made it effective from 1 January.
A filing with the US's Securities and Exchange Commission said of Mr Kneeland that, "...since he has asked employees to reduce costs and accept significant staff cuts, he believed that he should lead by example and share some of the economic burden through a reduction in his base salary."
United said the reduction in base salary - to $600000 (€450000) from $750000 (€560000) for 2009 -- does "not affect ancillary benefits, such as bonus targets and severance pay, which, if and to the extent any become applicable during the reduction period, would continue to reference his base salary level prior to the amendment."
Mr Kneeland informed employees in January of other cost reductions. These include a moratorium on salaried employees' merit increases and reducing the company's matching contributions to employees' retirement funds.