On the evening of December 12, Country Garden announced that the company's executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong took the initiative to request a reduction in salary. Before the salary cut, their annual salaries were 370,000 yuan, 3 million yuan, 2 million yuan and 370,000 yuan respectively, and after the salary cut, they were uniformly adjusted to an annual salary of 120,000 yuan, that is, a monthly salary of 10,000 yuan. The move has attracted a lot of attention, after all, it is not common for executives to take voluntary pay cuts.
In the face of changes in the market environment and the company's unprecedented predicament, Country Garden actively promoted self-help measures. According to the company, by 2023, they plan to reduce their administrative expenses, which will be significantly reduced by nearly 60% compared to 2021. In addition, Country Garden has also adjusted its organizational structure, merging the original 14 regional companies into 7 new regions to promote flat and efficient management.
This move by senior executives to take the initiative to reduce salaries is not only to cooperate with the company's self-help measures, but also to send a positive signal to the whole society. After the salary cut, the salaries of the four directors of Country Garden are close to the average salary, showing that they shoulder social responsibility and are willing to share weal and woe with employees.
It is not uncommon for executives of small and medium-sized enterprises to take voluntary pay cuts in difficult economic times, but for executives of large real estate companies, such a move is indeed remarkable. Among the four directors of Country Garden, Mo Bin's salary was the highest before the adjustment, at 3 million yuan, a 96% reduction after the salary cut. The other three directors, Yang Huiyan, Yang Ziying and Chen Chong, also saw a significant decline.
This voluntary salary reduction reflects the executives' sense of responsibility and responsibility for the company's development. They are willing to take on personal financial pressures, face difficulties with employees, and get through them together. This also allows more people to see the responsibility and self-sacrifice spirit of corporate leadership.
Country Garden's senior executives took the initiative to reduce their salaries, which aroused widespread attention and thinking in the real estate industry. With the changes in the real estate market and the intensification of competition in the industry, the development of real estate enterprises is facing unprecedented challenges. In this context, whether senior executives' voluntary salary cuts can become an incentive benchmark in the industry is worth in-depth.
On the one hand, executives voluntarily take a pay cut to demonstrate their commitment and loyalty to the company, and demonstrate the responsibility and responsibility of those in power. They hope to lead by example, boost the morale of employees, boost the confidence of the company, and then promote the positive development of the entire industry.
On the other hand, in tough economic times, senior executives taking the initiative to reduce salaries can also create more room for capital flow and resource allocation for enterprises. This will help enterprises cope with the risks and challenges of the external environment and better find new impetus for development.
Therefore, the executive's voluntary salary cut is not only a performance of incentive, but also a strategic choice. It requires a high sense of mission and responsibility from the leadership of the enterprise, as well as the understanding and support of all sectors of society.
In addition to the senior executives' voluntary salary cuts, Country Garden has also taken a number of self-help measures to cope with changes in the market and competitive pressure in the industry. According to public information, in the past two years, Country Garden has adjusted its executive compensation several times, and as of 2023, executive compensation has decreased by 86% compared with 2021. This series of measures shows Country Garden's determination and ability to actively respond to changes.
In addition, Country Garden has also carried out a major adjustment of its organizational structure, merging 14 regional companies into 7 new regions to further optimize resource allocation and improve management efficiency. This adjustment aims to promote a better fit between the organization and the business, achieve synergy and complementarity, give full play to the role of outstanding talents, and ensure the realization of the company's strategic goals.
Through a series of self-help measures such as salary reduction, reduction of administrative expenses and adjustment of organizational structure, Country Garden strives to find new development opportunities in the current difficult market environment and further enhance its competitiveness and market position.
Country Garden's senior executives took the initiative to cut salaries, which attracted widespread attention. This initiative reflects the executives' sense of responsibility and responsibility for the company's development, and also sends a positive signal. In addition, Country Garden has also accelerated the transformation and development of the enterprise through a number of self-help measures.
The initiative of senior executives to reduce their salaries has certain reference significance in the current economic situation. It is not only a manifestation of motivation, but also a strategic choice. By reducing pay levels, companies are able to create more room for better use of resources and demonstrate responsibility to their employees and society in difficult times.
Of course, the initiative of senior executives to reduce their salaries is not the only way to solve the problem, and it is more important to strengthen the internal management and innovation capabilities of the enterprise itself. Only by continuously improving the core competitiveness of enterprises can we gain a firm foothold in the market, get out of the predicament, and move towards a new future.