Chinese e-commerce company JD.com is to cut pay by up to 20% for senior executives, saying the move would help deal with slowing growth and improve welfare for lower-paid staff, in an apparent nod to Beijing’s push to narrow the country’s wealth gap, reports the Financial Times.
More than 2,000 employees at deputy-director level and above will be affected by the pay cuts, with cash salaries slashed by 10% to 20%, starting on January 1 next year. The biggest cuts will fall on the most senior employees.
Founder Richard Qiangdong Liu announced the decision on November 22 in an internal email seen by Nikkei Asia. “I hope the executives will understand and support this decision! I’m sorry for the more than 2,000 executive brothers, I apologise to you!” the 48-year-old billionaire said in the email.