Cellcom CEO Amos Shapira: Next year might be tougher because of the expected slowdown in the economy.
Sources inform ''Globes'' that Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) will cut executive salaries for one year. The symbolic measure will not affect salary costs, nor will the company lay off staff, in view of its record results for the third quarter. The company informed employees of the measure in response to employees' worries and queries about how the economic crisis might affect them.
The sources added that Cellcom CEO Amos Shapira decided to cut his gross salary by 10%, and that other top executives will have their salaries cut by 8%. Shapira told employees in a circular, "Cellcom's condition is sound and stable, but I cannot promise that there won't be cutbacks in the future. At the moment, there are no plans to make cuts in view of the company's good achievements and expectations that this trend will continue."
Shapira added, "The wave of layoffs in the economy has created a feeling of great uncertainty at all communications companies, and Cellcom is no exception in this regard. The achievements of communications companies and the fact that none of the cellular operators has not yet reported any weakness in their business may be temporary facts, and next year might be tougher because of the expected slowdown in the economy."
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2008
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