Samsung cuts jobs and pay as Koreans brace for pain
Article Abstract:
The Samsung Group announced cutbacks in response to pressure created by enormous debts. Plans call for the second-largest South Korean conglomerate to lower new investment by 30%, place about 30% of its 260,000 employees into new positions and reduce top management salaries by 10%. Samsung said could save more than $1 billion by divesting itself of 34 product lines in 1998, in addition to the 35 lines it already has cut in 1997. The conglomerate also will apply its less than $6 billion in investments toward semiconductors, telecommunications and motor vehicles. Samsung is among the 'chaebol' business giants facing significant cuts in government spending and tighter credit. The changes stem from South Korea's request for a minimum $20 billion in loans from the International Monetary Fund (IMF). Unemployment could total as much as 5% in 1998, compared to 2.2% in 1996, according to analyst expectations.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Top post at rock-bottom wage; chief executive puts stock-only pay to ultimate test
Article Abstract:
Ingram Micro CEO Jerre L. Stead is testing the theory that top management salaries should be tied to performance. Stead receives no salary for managing the computer distributor, but has received stock options that allow him to purchase up to 3.6 million shares of the company's stock. The agreement allows Stead to purchase 400,000 shares immediately and 1.6 million shares in four installments that begin in Apr 1998. The rest of his stock purchase schedule is tied to specified goals established for the company's earnings and stock price. The agreement could result in Stead owning 2.8% of the company within five years. This approach has been recommended by many industry observers who believe CEO salaries should be tied to performance. Stead is not alone in accepting a potentially large payoff in stock options. Triarc CEO Nelson Peltz and Panenergy CEO Dennis R. Hendrix also receive no salary.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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