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Benefits April 1, 2009
LoJack Follows 401(k) Match Suspension Trend
April 1, 2009 (PLANSPONSOR.com) - The Westwood,
Massachusetts, company best known for its vehicle tracking
devices has suspended its 401(k) match for all
employees.
Reported by Fred Schneyer
A Boston Business Journal report said the match suspension is part of a broad cost-cutting effort by the LoJack Corp. that also included a compensation cutback for its senior executives.
The news report said the LoJack board opted to cut Chairman Richard Riley’s pay by $25,000 and CEO Ronald Waters’ compensation by $14,000. It also froze annual pay increases to executive officers and changed the company’s executive bonus plan to be more closely pegged to specific performance benchmarks.
According to the report, LoJack swung to a 2008 $32.5 million loss on revenue of $198.7 million, compared with a $21.4 million profit on $222.7 million in revenue in 2007.