PETALING JAYA: FGV Holdings Bhd board of directors have unanimously agreed to take a fee cut of 20%, effective from July 2020, until December 2020.
After December, the board will review the global and domestic economic situations before making a decision on next year’s fees.
Additionally, FGV’s employees in senior management, ranked general manager and above, will take two days of mandatory no pay leave and a 20% reduction in their car allowance, also from July to December 2020.
FGV chairman Datuk Wira Azhar Abdul Hamid said FGV has implemented several cost-cutting initiatives to improve its bottom line, and conserve cash flow to shore up its finances.
“We are however conscious of the impact of any cost rationalisation exercises on staff, and thus, the board of directors and senior management will take the first steps,” he said in a statement.
These measures are on top of the ongoing rationalisation plan to reduce manpower costs by 10% over a three-year period from 2019.
With regard to the company’s performance, Azhar said in 2019 it achieved a remarkable operational transformation, however, it recorded a weak Q1 this year.
“I am confident that we will bounce back with a slight recovery in Q2. We expect performance to improve significantly in the second half of 2020 and thus, our FY2020 targets remain. We will weather this stormy period, and tread cautiously in our planning and execution strategies to restore shareholder value.”
Shareholders have approved all resolutions at its AGM, held virtually, today.
source https://www.thesundaily.my/business/fgv-directors-take-20-pay-cut-DY2607984
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