Chi Mei executives get 10% pay cut until year-end

By Chinmei Sung, Bloomberg

TAIPEI, Taiwan — Chi Mei Optoelectronics Corp., Taiwan’s second-biggest maker of liquid crystal displays, cut executives’ salaries by 10 percent from this month to reduce costs as demand for panels slows.

The reduction, which affects about 100 employees, will last at least until the end of the year, Denis Chen, a director in charge of finance, said by phone. The Taipei-based Digitimes newspaper reported the cut earlier today.

“We want to be an example to all company staff that we are in this together,” Chen said.

Chi Mei, based in Tainan, joins Elpida Memory Inc. in lowering salaries as the global economic slump saps demand for consumer electronics. Separately, AU Optronics Corp., Taiwan’s biggest LCD maker, said today it has asked some factory workers to take unpaid leave.

Elpida said last week that Chief Executive Officer Yukio Sakamoto will receive no pay for November and December. After that, his salary be lowered by 50 percent until the fiscal year ends on March 31 or the Tokyo-based company returns to operating profit on a monthly basis.

Chi Mei said it will continue to cut output of LCDs, used in computer monitors and flat-panel televisions, in October after a 15 percent reduction in the third quarter.

AU Optronics is asking employees to take the leave because of its earlier announced plan to lower third-quarter output by 10 percent from the second, Yawen Hsiao, a company spokeswoman, said by phone. The Hsinchu-based company doesn’t intend to cut workers or salaries for now, Hsiao said.