Orange 21 has filed an 8-K with the SEC stating that on Mar. 13, 2009, the company temporarily reduced compensation for its U.S. employees, including its named executive officers, 10% for approximately the next three months.


The filing reads: “Pursuant to the Reduction, the annual base salaries of the company’s salaried employees were reduced by 10% and the company’s hourly employees were put on reduced work schedules that resulted in their compensation being reduced by ten percent 10%. 

“Additionally, the company’s wholly-owned subsidiary in Italy, LEM, S.r.l. (“LEM”), implemented a government-subsidized leave program pursuant to which certain employees’ work schedules will be reduced by 20-50% for approximately thirteen weeks. Under the program, the Italian government will subsidize a certain portion of these employees’ salaries to minimize the effect of the Program on the employees. The program is expected to result in a savings of approximately 20% of LEM’s payroll-related costs over the thirteen-week period.”


Orange 21 said the reduction and leave program are aimed at reducing expenses during the current global economic downturn and will take effect immediately.