ThyssenKrupp supervisory board takes pay cut

18th January 2013, Comments 0 comments

ThyssenKrupp's supervisory board has agreed to take a 50-percent pay cut in view of the German heavy industry and steel giant's disastrous losses last year, its chief said on Friday.

The supervisory board's 20 members have agreed "to forego half their pay for 2012," board chief Gerhard Cromme told ThyssenKrupp shareholders at their annual general meeting in Bochum, northwest Germany.

"This gesture is intended as a sign of our dismay and our solidarity with you, our shareholders," he said.

The move is related to huge losses the company incurred at new steel mills in Brazil and the United States.

ThyssenKrupp has been forced to write down the value of those plants, running up an overall year-end loss of 4.7 billion euros ($6.3 billion) for the business year ended September 30.

Given the magnitude of that loss, the group announced it would not pay a dividend for the first time since the merger of Thyssen and Krupp nearly 14 years ago.

The steel mills have since been put up for sale, but negotiations are still ongoing.

© 2013 AFP

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