Execs pay restored amid layoffs

AUSTIN (KXAN) - Just as more than 3,000 people lost their jobs over the weekend for one of Austin's biggest tech companies, executives got a 10 percent pay reinstatement.

An SEC filing by Spansion Monday showed executives and "certain other key employees" would receive a reinstatement of a 10 percent pay cut imposed in October 2008.

The SEC filing shows that Spansion's Board of Directors approved the "employee retention" in part, "to provide an incentive for executive officers and certain other key employees to remain employed by the Company."

Monday, Spansion announced layoffs for 3,000 employees, or 35 percent of its workforce. 1,200 people work for Spansion in Austin and it is unknown how many of those local employees lost their jobs Monday.

In a press release Monday, a company spokeswoman said the reduction in force will provide save the company $225 million a year.

Spansion's public relations department responded to the layoffs and pay reinstatement.

"Our reduction in force was a regrettable, but an unavoidable decision that affected all levels of the company, including our executive management team," said Holly L. Burkhart, Director of Public Relations. "The remaining members of Spansion's management team are more critical than ever to leading the company through a difficult period so that we can preserve the value of the enterprise and create new jobs in the future. As a result, the Board of Directors made a strategic decision to restore the full salaries of our key executives to ensure their continued commitment to the company's future."

 

 

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