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Zoomlion slashes executive salaries

By LYU CHANG (chinadaily.com.cn) Updated: 2014-06-30 16:19

China's second-largest construction equipment manufacturer is cutting the salaries of its senior executives amid an industry downturn, China Business News reported on Friday.

Zhen Chunxin, chairman of Zoomlion Heavy Industry Science & Technology Development, the construction equipment maker based in Changsha, announced during its shareholders meeting that 22 of its top executives, including the chairman, senior president and chief financial officer, will have their wages cut in half on July 1.

Though the expiration date hasn't been disclosed, the company said the pay reduction policy will last until the company's performance improves.

China's construction machinery sector has been on a down slope since 2012, as major players struggled with excessive capacity spurred by the country's massive stimulus plan in 2008.

Zoomlion's annual net profit fell nearly 48 percent in 2013, with its revenue dropping 20 percent to 38.5 billion ($6.2 billion), while its major rival Sany Heavy Industry's revenue dropped 20 percent to 37.3 billion yuan over the previous year.

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