Sany to cut chief's salary to 15 US cents

By Lee Spears | February 6, 2009, Friday |

Print Edition

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.

Manufacturing

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Sany to cut chief's salary to 15 US cents

Email this to your friend