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Kim Heng unveils pay cut of up to 20% to tide over downturn
KIM Heng Offshore & Marine Holdings unveiled on Monday up to 20 per cent reduction in staff compensation across the group to tide over a protracted market downturn.
"Compensation reductions will range from 5-20 per cent with the higher reductions applied to senior management and the board (of directors)," Kim Heng said in an SGX disclosure.
The company is also reducing the number of foreign workers on its payroll, although "compassionate compensation" has also been extended to those departing workers "who have performed with skill and dedication".
Kim Heng's group chief executive and chairman Thomas Tan said: "The current low oil price environment warrants conservative management of our cost structure so that we can remain resilient as a group and is able to ride through this downturn."
He added: "We have designed our cost rationalisation strategy to (include) significant salary cuts for both senior management and the board (so as to) minimise workforce reduction."
Kim Heng slipped into the red with a loss of S$1.72 million for the three months ended March 31, 2016, compared to a profit before tax of S$1.11 million last year.
At its recent annual general meeting, the company's shareholders have approved the payment of a final dividend of 0.3 Singapore cent per share. Full-year loss for FY15 was S$4.93 million.