POSCO chief to return 30% of salary
March 28, 2014 Leave a comment
Posted : 2014-03-19 16:49
POSCO chief to return 30% of salary
By Choi Kyong-ae
POSCO’s executives will voluntarily return a portion of their salaries to help the steelmaker boost its profits, the company said Wednesday.
At a meeting with executives held Wednesday, POSCO Chief Executive Kwon Oh-joon said he will return 30 percent of his basic pay until the company’s profits begin to rise, the company said in a statement.
“When we put a bigger focus on quality and profits rather than quantity and sales volume, it can be translated into profitability. Executives should take the lead in the drive to increase profits,” Kwon said in the statement.
The 65-year-old top executive is one of POSCO’s 12 board members. They were paid 7 billion won ($6.5 million) in total last year, according to a regulatory filing. The company didn’t provide a breakdown for the wages given to the directors.
Some 80 executives also joined Kwon’s effort to help the company. They agreed to cut their wages by 10 to 25 percent until the company sees tangible results, the statement said.
Vice President Yoon Dong-jun asked the executives to join Kwon to show their willingness to ride out the difficulties facing the company and achieve growth. They accepted Yoon’s challenge, it said.
Previously, POSCO executives reached an agreement to cut their wages by 10 percent in 2009 when the steel making industry was hit hard by the financial crisis. Back then, other major conglomerates took similar measures to survive the uncertainty.
The world’s sixth-biggest steel maker by output has 17,000 employees.
In 2013, POSCO’s net profit plunged 43 percent to 1.36 trillion won, from 2.39 trillion won a year earlier. Oversupply and lower demand dealt a major blow to the bottom line of global steel makers.
On Friday when he took the helm at POSCO, Kwon said regaining financial health is the most urgent task for the Pohang-based steel company.
Kwon, who formerly served as president and technology chief at POSCO, outlined a broad plan to secure “fundamental competitiveness” as a leading steel maker.
The company is not seeking expansion for the time being. Instead, it will focus on improving its financial status by streamlining, selling stakes in affiliates and raising funds through initial public offerings of unlisted ones, he said.
About bambooinnovator
Bamboo Innovator 