INM introduces pay cuts, saves redundancies

Independent News and Media (INM) chief executive Sir Anthony O'Reilly has decided to take a ten per cent pay cut and has refused his bonus in an attempt to persuade other staff to do the same.

INM has called on its Irish staff to take the pay cut in return for stock options reportedly worth two and-a-half-times the size of their reduction in salary.

A mediaguardian.co.uk report quoted an INM spokesperson as saying: "Management is seeking staff co-operation to effect a number of cost savings mindful of the economic and advertising conditions."

The reduction in pay is perhaps more welcome than redundancies, and certainly remains in line with the view that maintaining regular levels of recruitment is important for those companies facing a tough time in 2009.

The pay cuts are staggered, meaning only those earning more than €100,000 will face a ten per cent cut, while those earning under €40,000 will receive only a pay freeze.

Recruitment levels can make a significant impact on the success of a company during the predicted recession next year, and those which maintain recruitment could possibly emerge from 2009 in a better position than they are in now.

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