CapitaLand imposes wage freeze on managerial staff, senior staff to take 5 - 15% off base salary

The restraint measures will be reviewed in 6 months' time.

Zhangxin Zheng | February 26, 2020, 05:05 PM

Singapore property developer, CapitaLand, has announced a wage freeze for staff at managerial level and above.

The announcement was made in a news release that informs the group's full-year results in FY 2019, which saw a record-high profit from business operations at at S$1,057.2 million.

However, the above sum excludes any gains or losses from divestments, revaluations, and impairments.

Total PATMI (Profit After Tax and Minority Interests) stands at S$2,135.9 million.

A show of solidarity with its stakeholders

CapitaLand said that the group has imposed a wage freeze for all managerial staff and above.

In addition, the board members and senior management will take a reduction in their board fee and base salary, from five per cent to 15 per cent from April 1, 2020.

These measures will be reviewed in six months' time, or when the Covid-19 situation has stabilised.

The group explained that these restraints measures are "a show of togetherness and solidarity with its stakeholders".

In an email to its staff, Group CEO Lee Chee Koon wrote that the group must "stand by ready to support its stakeholders" and "take heart that real estate is a long-term business".

Lee added, "We cannot run a great business if we are not guided by a sense of shared responsibility and commitment to our stakeholders and the communities we operate in."

Dividends will also remain at 12 Singapore cents per share, unchanged from FY 2018.

This piece of news comes after a similar move announced by Temasek, a majority stakeholder of CapitaLand.

Affected staff to receive CapitaVouchers

As a form of compensation for its managerial staff in Singapore, these staff members will receive CapitaVouchers.

About S$2 million worth of vouchers will be distributed in total, which doubles as a move to support CapitaLand's retailers.

Achieved improved all round performance in 2019

According to the Chairman of CapitaLand Limited, Ng Kee Choe, the group has achieved "improved all round performance" in FY 2019.

The Operating PATMI last year was driven by the Ascendas-Singbridge (ASB) businesses after the group completed the acquisition of ASB on June 28, 2019, in addition to other assets that turned operational.

The revenue from the last quarter of 2019 grew by 46.3 per cent to S$2,375.9 million, as a result of the consolidation of ASB and Raffles City Chongqing, as well as higher contributions from the malls in Singapore and China and the lodging properties in the United States.

Ng said that CapitaLand's strong fundamentals position the group well to address the challenges presented by the Covid-19 outbreak.

Lee also expressed confidence in the group when it comes to the economic impact of Covid-19.

"With a strong balance sheet, CapitaLand is well-positioned to continue to pursue growth and be ready to seek counter-cyclical opportunities."

https://www.mothership.sg/2019/09/raffles-city-chongqing/

Top photo collage via CapitaLand's Facebook