On the evening of December 12, Country Garden (HK2007, stock price 0HK$79, market capitalization 221HK$100 million) announced that in light of the actual business needs of the industry and the Company, Ms. Yang Huiyan, Mr. Mo Bin, Ms. Yang Ziying, executive directors of the Company, and Mr. Chen Chong, a non-executive director, took the initiative to request a reduction in remuneration, and signed a supplementary agreement on director services and a supplementary appointment letter with the Company on November 1, 2023, which will be used as the latest annual remuneration adjustment for the Directors (approved by the Board of Directors of the Company on the date of this announcement and effective from November 1, 2023).
According to the announcement, the annual salaries of Yang Huiyan, Mo Bin, Yang Ziying, and Chen Chong before adjustment were 370,000 yuan, 3 million yuan, 2 million yuan, and 370,000 yuan respectivelyAfter the adjustment, the average of the four is 120,000 yuan.
The directors' salary cut is only symbolic, one is that they have already earned enough, and the other is that they are all shareholders, and the remuneration is only part of the income.
Taking Mo Bin as an example, the salary now (before the salary cut) is actually after many salary cuts, and Mo Bin's annual salary at his peak was 19.2 billion (2021), and the annual salary in 2020 also reached 13.3 billion.
In addition, he holds Country Garden's ** and bonds, with a cumulative income of more than 1100 million.
According to public statistics, since Mo Bin joined Country Garden in 2010, he has received more than 6500 million yuan (not counting official expenses, such as car distribution, shopping cards, clothing, gifts, catering, etc.) issued in the name of the company), the annual income is almost higher than the net profit of a small and medium-sized listed company.
At the same time, Yang Ziying and Chen Chong, who announced a "voluntary" salary cut, are Yang Huiyan's sister and husband respectively, and the salary and equity they hold from the company are countless.
In addition to the salary (salary + bonus) income of public information, their actual hidden income is not low.
Country Garden said that the company has cancelled all senior executives' car allocation, and when there is a need for work, it can apply for official dispatch or use its own car to achieve intensive control and cost reduction of vehicle expenses. For all group buses, including the former executives' car allocation, the assets will be revitalized through internal public auction and external workers' debt swaps. In addition, treatments such as reimbursement of medical examinations for senior executives and free canteens for senior executives have also been abolished. The administrative expenses of the whole group are reduced by nearly 60% in 2023 compared with 2021 by the principle of zeroing, non-essential expenses are not spent, and rigid expenses are reduced as much as possible through integration and intensification.
It can be seen that the company's expenditure on senior executives is very huge, and the reduction of these costs can indeed bring certain benefits to the company, but as high as 1The current liabilities of 2 trillion yuan are a drop in the bucket.
It is more like expressing a gesture to obtain more benefits in the process of ensuring the delivery of the building.