CapitaLand freezes pay for managerial staff, senior management to take wage cut

CapitaLand freezes pay for managerial staff, senior management to take wage cut

The deal would give CapitaLand assets under management of more than Sg$116 billion
File photo of real estate developer CapitaLand's logo. (Photo: AFP/Theresa Baraclough)

SINGAPORE: Singapore-listed developer CapitaLand announced a wage freeze for members of staff at managerial level and above on Wednesday (Feb 26).

In a news release announcing its full-year results, CapitaLand also said that board members and senior management will take a pay cut.

From Apr 1, board members and senior management will take a 5 to 15 per cent reduction in their board fee and base salary "as a show of togetherness and solidarity with its stakeholders".

These measures will be reviewed after six months or when the position arising from the COVID-19 outbreak has stabilised, said CapitaLand.

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“The sudden outbreak of COVID-19 has definitely affected our businesses and those of our partners and tenants, especially in China and Singapore," said Group CEO of CapitaLand Lee Chee Koon. 

"The extent of the impact will depend on how long the outbreak lasts. Nevertheless, we remain positive on the long-term fundamentals for Singapore and China."

A portion of the compensation for CapitaLand's managerial staff in Singapore will be in CapitaVouchers, with about S$2 million to be distributed in total.

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The move is to "further support CapitaLand's retail partners", it said, adding that it would continue to monitor the situation and is prepared to render more assistance if and when needed.

CapitaLand Group has also rolled out targeted relief measures, including rental rebates and marketing assistance for its retail partners in the Singapore and China markets.

"CapitaLand will fight and ride through this difficult period together with our stakeholders," said Mr Lee.

READ: Temasek freezes staff salaries, senior management to take partial cut in bonuses

A day earlier, CapitaLand majority shareholder Temasek announced a company-wide salary freeze, and cuts in annual bonuses for its senior management. 

Temasek said that senior management may take a voluntary pay cut of up to 5 per cent for up to a year.

CapitaLand also announced on Wednesday a net profit of S$926.6 million for the fourth quarter, nearly double its 2018 result. Its full-year net profit for FY2019 was S$2.14 billion, up 21 per cent from FY2018.

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Source: CNA/ic(hm)

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