AUSTRALIA: AWB asks senior execs to take voluntary pay cut

The Australian Wheat Board has asked its senior executives to take a 10% pay cut as part of a plan to cut costs due to the impact of the Australian drought. Managing Director Andrew Lindberg has reportedly asked more than 50 staff earning more than A$100,000 (US$56,500) annually to take a voluntary pay cut next year. The company also plans to stop staff bonuses and temporarily stop hiring any more employees.

December 18, 2002

The Australian Wheat Board has asked its senior executives to take a 10% pay cut as part of a plan to cut costs due to the impact of the Australian drought.

Managing Director Andrew Lindberg has reportedly asked more than 50 staff earning more than A$100,000 (US$56,500) annually to take a voluntary pay cut next year. The company also plans to stop staff bonuses and temporarily stop hiring any more employees.

Earnings at AWB are expected to fall as a result of the worst drought in Australia in more than 20 years. Analysts have predicted AWB’s net profit will fall to between $30m and $40m, well short of a $107m net profit for the financial year ended 30 September 2002, reported Dow Jones International.