Following the declining profit announcement today, Telecom CEO Paul Reynolds says the executive teams and most senior managers will not receive pay increases this year. This is a result of the company sharpening its focus on managing costs in the current economic environment.
“Our executive team has unanimously agreed that this is a prudent and appropriate step,” says Reynolds. “This salary freeze compliments our other initiatives to control costs, such as significant reduction in consultant and contractor spend, the closure of Ferrit and the recently announced proposal to increase offshoring.”
While the impact of the economic recession on Telecom has been modest to date, the company is starting to see signs of a slowdown in customer-facing business units. “We have a responsibility to trim costs where we can, while preserving our investment programme and focusing our expenditure on delivering excellent customer service.”
He adds that for other employees any pay increases over the next year are expected to be much lower than in previous years.