United Rentals CEO cuts own pay

Premium Content

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.

Webinar: Caterpillar experts to discuss the increasing importance of temporary power
Live event on July 7, will explore how businesses are using temporary power solutions to strengthen energy resilience
Product launch update: new tower cranes
New tower cranes launched into the North American market this year
Why rugged electronics are becoming mission-critical for off-road OEMs
Connectivity and digital controls are reshaping heavy equipment and manufacturers are finding performance depends as much on durable electronics as on the vehicles themselves