Company executives are biting the bullet and sharing in their staff’s cash woes due to the difficulties their companies are facing. Some members of the management board are accepting monthly salaries of VND3-5 million (USD143-238.4) which are commonly given to unskilled workers.
Members of the management boards receives salary of unskilled worker
Company bosses get dose of reality
The recent Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) annual shareholder meeting agreed that the company’s chairman would be paid based on the company’s performance. Other members of the board would be paid VND3 million (USD143) per month.
IDICO operates in construction, interior and exterior decoration, real estate trading.
Electronics Communication Technology Investment Development Company’s annual general meeting approved salary levels for top management of 2% of the company’s post-tax profits. The head of the inspection board will be paid VND5 million (USD238.4) per month, while other members in this board would receive VND3 million (USD143.5) per month each.
Nam Kim Steel Company shareholders set wages for the chairman of board at VND120 million (USD5,722) per year, vice chairman of the board VND84 million (USD4,005) per year, and remainder of the board VND60 million (USD2,861) per year each.
Head of the Nam Kim’s inspection board is paid VND10 million (USD476.8) per year, members of this board get paid of VND5 million (USD238.4) each.
Declining profits
Although domestic economy has had signs of rebounding, many companies continue to suffer serious losses or were left unprofitable in the first quarter of the year.
In Binh Duong Trade and Development Company’s business report, taxed profits in this first quarter were claimed to have reached VND976 million (USD46,542), marking a decrease of VND18.7 billion (USD891.750) compared to the same period last year.
Chairwoman Bui Thi Lan, in her report given to the Ho Chi Minh City Stock Exchange, attributed this to the economic downturn, and due to the fact that the business often performed better in the third and fourth quarters of the year.
Mirae Company’s post-tax profits reached VND259 million (USD12,350), marking a 50% decline compared to the same period last year.
A Mirae Company official attributed this to a continuous rise in the cost of input materials combined with price cuts in the company’s product line.
