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Sany to cut chief's salary to 15 US cents
By Lee Spears |
February 6, 2009, Friday
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SANY Heavy Industry Co, China's biggest supplier of concrete-making equipment, plans to cut its chairman's annual salary to 1 yuan (15 US cents) and slash the pay of board members by as much as 90 percent because of the financial crisis.
Chairman Liang Wengen, who was paid 630,000 yuan in 2007, would take a salary of 1 yuan, Sany said in a statement to Shanghai Stock Exchange yesterday. Directors Tang Xiuguo, Xiang Wenbo and Yi Xiaogang would accept pay cuts of 90 percent, and other board members would take reductions ranging from 30 percent to 90 percent, it said.
Chinese companies, including Lenovo Group and Aluminum Corp of China, are cutting executive pay as demand slumps and earnings slide because of the global recession. Manufacturing shrank for a fourth month, a government survey showed on Wednesday.
"Lots of companies will be reducing performance-based incentives because poor economic conditions keep them from meeting targets," Bradley Ni, director of executive compensation at Hewitt Associates Consulting Co, told Bloomberg News. "Not so many of them are cutting base salaries."
Xiang was paid 550,000 yuan in 2007, and Yi 470,000 yuan, according to the 2007 annual report. Tang's salary wasn't disclosed. The board won't consider pay cuts for workers below mid-level management, the firm said. Sany Heavy is 36 percent owned by Liang, according to the 2007 report.
"The management are shareholders, and stock performance is the main contributor to the value of their wealth," said Andy Meng, a Hong Kong-based analyst at Morgan Stanley.
Chairman Liang Wengen, who was paid 630,000 yuan in 2007, would take a salary of 1 yuan, Sany said in a statement to Shanghai Stock Exchange yesterday. Directors Tang Xiuguo, Xiang Wenbo and Yi Xiaogang would accept pay cuts of 90 percent, and other board members would take reductions ranging from 30 percent to 90 percent, it said.
Chinese companies, including Lenovo Group and Aluminum Corp of China, are cutting executive pay as demand slumps and earnings slide because of the global recession. Manufacturing shrank for a fourth month, a government survey showed on Wednesday.
"Lots of companies will be reducing performance-based incentives because poor economic conditions keep them from meeting targets," Bradley Ni, director of executive compensation at Hewitt Associates Consulting Co, told Bloomberg News. "Not so many of them are cutting base salaries."
Xiang was paid 550,000 yuan in 2007, and Yi 470,000 yuan, according to the 2007 annual report. Tang's salary wasn't disclosed. The board won't consider pay cuts for workers below mid-level management, the firm said. Sany Heavy is 36 percent owned by Liang, according to the 2007 report.
"The management are shareholders, and stock performance is the main contributor to the value of their wealth," said Andy Meng, a Hong Kong-based analyst at Morgan Stanley.
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