[image credit : Genting Group]
Hong Kong has been fighting with the coronavirus over the previous months. The infection has affected two segments in the country – gambling and cruising. Both businesses contribute to the local economy with a significant percentage and Genting has been aware of such a situation. Most local operators are facing similar problems and are looking for potential solutions. Following the urgent situation, Genting HK decided to cut off salaries to the leading staff in the company.
Genting HK has just announced that its senior executives won’t be paid for now. Additionally, the operator’s managers will experience similar trouble with their salaries reducing up to 50%. All these compensation changes will last until the end of the year.
The list of executives who will stay without compensation is becoming bigger and bigger. It includes Genting HK chair, CEO Lim Kok Thay, Deputy CEO Lim Keong Hui, Group president Colin Au Fook Yew, and other directors. Managers, on the other hand, will have to deal with a 20%-50% decrease in payment plans. According to the Genting report, 90% of the managers accepted the program, which could save the company $15 million until the end of the year.
Following the tough decisions, Genting HK issued the statement, “The Company expresses sincere gratitude and appreciation to all its employees, officers and crew for their resilience and hard work for battening down the hatches in these stormy seas and in particular, those involved in ensuring the guests onboard World Dream disembarked safely without a single infection incident in early February 2020.
“There are positive signs that China is starting to return to work with reopening of offices and factories; 90% of Starbucks stores are reported to have re-opened; parts of Shanghai Disney Resort re-opened on 9 March 2020 and slow improvement in sentiment. The Group will continue to monitor its business closely during this temporary disruption and adjust its plans in the best interest of the Group.”