Hyundai Management Take 20% Pay Cut
21 April, 2020
Around 1,200 executives at Hyundai's 50 affiliates have decided to an indefinite 20-percent pay cut starting this month.
The automotive conglomerate has been hit hard by dwindling sales due to the coronavirus epidemic. A senior Hyundai executive said Monday, "Managers made a decision to take the initiative and set a good example as business gets worse. There is consensus that people cannot sit idly by in this unprecedented crisis."
Hyundai chief Chung Eui-sun will also take a pay cut. He earned W5.2 billion this past year from Hyundai Motor and parts maker Hyundai Mobis (US$1=W1,221).
The last time management at Hyundai accepted a pay cut was in 2016 amid China's unofficial boycott of Korea.
The majority of Hyundai and Kia's overseas factories have stopped running because of the epidemic and sales have been declining since February.
Hyundai Steel, which supplies both carmakers, started a voluntary retirement scheme this past year, and plans to market its headquarters in southern Seoul. Hyundai Construction in addition has seen plant construction projects grind to a halt.
Meanwhile, Lotte chairman Shin Dong-bin and executives at Lotte Holdings agreed to a three-month pay cut. Shin will need a 50 percent cut, while 33 executives and outside directors will lose 20 percent.
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