Ford Motor Co.’s top two executives will take 30 percent pay cuts as the company tries to conserve cash and make it through the worst sales downturn in 26 years. Chief Executive Alan Mulally and Executive Chairman Bill Ford Jr. will see the salary reductions this year and next. They were spelled out in a memo to employees obtained by The Associated Press. In addition, two people briefed on contract concessions made by the United Auto Workers say Ford will offer another round of early retirements and buyouts to all hourly workers. The people did not want to be identified because the union has not unveiled the changes to its members.
Bernanke sees end to recession this year
The economy is suffering a “severe contraction,” Federal Reserve Chairman Ben Bernanke told Congress on Tuesday. But he planted a glimmer of hope that the recession might end this year if the government managed to prop up the shaky banking system, and Wall Street rallied. Bernanke said the economy is likely to keep shrinking in the first six months of this year after posting its worst slide in a quarter-century at the end of 2008. Bernanke said he hoped the recession will end this year, but that there were significant risks to that forecast. Any economic turnaround will hinge on the success of the Fed and the Obama administration in getting credit and financial markets to operate more normally again.
Home Depot shares climb despite loss
The Home Depot Inc., which has suffered under the weight of the collapsing housing market, reported a fiscal fourth-quarter loss of $54 million Tuesday mostly because of its plan to shut its four smaller home-improvement brands. But adjusted results topped analysts’ estimates, the shares of the nation’s largest home improvement chain climbed nearly 11 percent. The Atlanta-based retailer lost 3 cents per share during the quarter, compared to a profit of $671 million, or 40 cents per share, a year ago. Excluding the charge related to the closings and a few other items, the Atlanta-based company earned 19 cents per share.
NYSE may relax dollar price rule
With many major companies trading in penny-stock territory, the New York Stock Exchange is considering relaxing a rule that requires shares to trade above a dollar. “That’s something that we’re considering, given the market environment,” said NYSE Euronext spokesman Raymond Pellechia. To remain listed on the NYSE, a company’s shares cannot remain below $1 over 30 consecutive days. The exchange has yet to submit a formal proposal to the Securities and Exchange Commission to ease that requirement, Pellechia said. Although it’s an NYSE rule, he said, the SEC would have to approve the rule change.
From Herald news services
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