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SIAEC management takes pay cut of 5-12% amid Covid-19 outbreak
SENIOR executives and managers at SIA Engineering Company (SIAEC), a subsidiary of Singapore Airlines, will take pay cuts of between 5 and 12 per cent as a cost-trimming measure amid a difficult business environment precipitated by the coronavirus outbreak.
The chief executive officer and executive vice-president will take the lead with a pay cut of 12 per cent and 10 per cent respectively, with effect from March 15, 2020, the mainboard-listed company said in a statement on Thursday.
Senior vice-presidents and vice-presidents will take cuts of 8 per cent and 7 per cent respectively, with effect from April 15, 2020.
Senior managers and managers will take a cut of 5 per cent with effect from May 15, 2020. A voluntary no-pay leave scheme has also been offered to all staff.
The SIAEC board has also volunteered a 12 per cent reduction in fees accruing with effect from April 1, 2020 in solidarity with management and staff, the company said.
SIAEC said the company has also taken other measures to control costs.
"We have cut non-essential duty travel and training, deferred selected capital expenditure and reduced non-essential operating costs, without compromising safety and quality standards and our long-term competitiveness," SIAEC said.
It added that it will stay focused on the implementation of its transformation initiatives to further strengthen the group’s capabilities and enhance operating efficiencies for the long term.
SIAEC's shares closed at S$2.01 on Thursday, down 16 Singapore cents or 7.37 per cent from the day before.