On the evening of December 12th, Country Garden, which was listed in Hong Kong, announced that its executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Nai offered to reduce their salary.
Before the salary reduction, the annual salaries of Yang Huiyan, Mo Bin, Yang Ziying and Chen Fu were 370,000, 3,000,2,000 and 370,000 yuan respectively, and after the salary reduction, they were uniformly adjusted to 120,000 yuan, that is, the monthly salary was only 10,000 yuan.
Previously, Country Garden disclosed that in the face of unprecedented difficulties, it has promoted a number of self-help measures, among which it mentioned that "in 2023, the Group tried its best to cut administrative expenses, with a total amount significantly reduced by nearly 60% compared with 2021".
On December 5th, the latest organizational restructuring of Country Garden was reported on the Internet, which "merged 14 regional companies into 7 new regions to promote flat and efficient management". People close to Country Garden confirmed that the news was true.
Four directors collectively reduced their salary.
Mo Bin dropped from 3 million to 120,000.
Country Garden announced on the Hong Kong Stock Exchange on the evening of December 12 that, in combination with the needs of the industry and the actual operation of the company, the executive directors Yang Huiyan, Mo Bin and Yang Ziying and the non-executive director Chen Nai of the company offered to reduce their salaries, and signed a supplementary agreement on directors’ services and a supplementary letter of appointment with the company on November 1, 2023.
Specifically, the adjusted salaries of the four directors are all 120,000 yuan/year, which translates into a monthly salary of 10,000 yuan/month. According to the data of the National Bureau of Statistics, in 2022, the average annual wage of employees in urban non-private units in China was 114,029 yuan, and that in Guangdong Province was 124,916 yuan. In other words, after the salary reduction, the salaries of the four directors of Country Garden are basically in line with the average social salary.
Among them, Mo Bin, the director and president of Country Garden, had the biggest decline. Before the adjustment, his annual salary was 3 million yuan, which was as high as 96% this time. Compared with the salary level before Country Garden’s accident, the salary in Mo Bin will drop even more.
Before the adjustment, the salaries of Yang Huiyan, Yang Ziying and Chen Tai were 370,000 yuan, 2 million yuan and 370,000 yuan respectively, and the decline after this adjustment was not small.
It is worth mentioning that the above three directors are actually members of Yang’s family, the real controller of Country Garden. Yang Huiyan just took the scepter from his father Yang Guoqiang in March this year and became the chairman of the board of directors, while Yang Ziying is Yang Huiyan’s sister and Chen Tai is Yang Huiyan’s husband.
Just finished adjusting the organizational structure
Greatly reduce administrative expenses.
According to public information, this is not the first time that Country Garden executives have reduced their salaries. In the past two years, the company has made several adjustments to the executive compensation. By 2023, the executive compensation will be 86% lower than that in 2021. These executives include the vice president of the company headquarters, the general manager of the functional center and above, and the regional president.
On December 5th, Country Garden also heard the news of great adjustment of organizational structure.
Net Country Garden merged 14 regional companies into 7 new regions: Hebei and Beijing merged into North China; Shandong and northern Jiangsu merged into Lusu region; The northwest and Shaanxi merged into the central and western regions; Anhui and Zhejiang merged into Zhejiang-Anhui region; Jiangxi and Fujian merged into the Jiangxi-Fujian region; Yunnan and Sichuan merged into Sichuan-Yunnan region; Guangxi and Jiangzhong merged into Jiangzhong region.
In this regard, people close to Country Garden confirmed that the rumor was true. The person pointed out that under the current industry situation, the adjustment aims to further improve the adaptability between the organization and the business, promote flat and efficient management, coordinate and complement the available resources, and do their best to ensure the realization of the strategic goal of "guaranteeing delivery".
Country Garden official WeChat official account published a monthly business meeting article on December 8th, which showed that the company’s administrative expenses were greatly reduced by nearly 60%. "The administrative expenses of the whole group are based on the principle of zeroing, and they are not necessary to spend. The rigid expenditures are reduced as much as possible through integration and intensification. In 2023, it will be significantly reduced by nearly 60% compared with 2021."
At the meeting, Yang Huiyan also revealed that the delivery challenge will enter the deep water area in the next 12 months. In 2024, the delivery volume of Country Garden is expected to exceed 400,000 sets, and the number is still huge. She said, "Guaranteeing delivery is a very difficult but also very important task. I hope that the company will wait and see, attach great importance to it and do a good job in pre-planning."
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