Property developer CapitaLand said on Tuesday it will not be laying off staff for now.
Instead, executive-level staff will take pay cuts of between three and 20 per cent as part of the company’s cost management measures.
In a statement, CapitaLand said the cuts are due to the deteriorating global financial environment and economic uncertainties.
President and CEO Liew Mun Leong will bear the maximum salary reduction of 20 per cent.
According to CapitaLand’s annual report, Mr Liew earned S$1.15 million in base salary in 2007, and was paid S$5.35 million in bonuses.
All salary reductions will take effect in January 2009.
CapitaLand said the salary reduction exercise is one of several cost management measures it has taken.
In the last crisis from 2001 to 2003, CapitaLand had also implemented a salary freeze for management and staff.
Management subsequently took a significant pay cut when the recessionary environment persisted.
Despite the latest pay cuts, CapitaLand said it will continue its training and development efforts and review its business operations for future growth opportunities.
Source : Channel NewsAsia – 3 Dec 2008