Bright Oceans Inter-Telecom said in its announcement earlier this week that the board had decided to adjust salaries for senior management in an effort to cope with the impact of the financial crisis.

(CCTV.com 11-27-2008 11:43)--Continued turmoil in the markets is finally hitting some of the top-earners in big companies. Salaries have been slashed for senior management. CCTV reporter Guan Xin takes a look at a Chinese-listed company that has taken the lead with pay-cuts of as much as 20 percent.

Bright Oceans Inter-Telecom said in its announcement earlier this week that the board had decided to adjust salaries for senior management in an effort to cope with the impact of the financial crisis. The salaries of 7 senior company officials, including the board chairman and president, dropped by 20 percent. This is the first listed company in China to officially cut senior management salaries.

Over the past three years, salaries for senior officials at Chinese listed companies have grown an average of more than 20 percent annually. That growth exceeded 40 percent in 2007, with financial companies seeing growth rates of over 200 percent. However, in the first three quarters, 253 listed companies reduced their salary expenditures due to poor performance. Most were property, chemical, pharmaceutical, and textile companies.

There are already companies cutting senior management pay in other countries. Just a week ago, Goldman Sachs announced that 7 of its management staff, including its CEO and board chairman, had given up their annual bonuses, and cut their salaries to 600,000 US dollars. And in Europe, UBS cancelled bonuses for its 12 highest ranking officials. Regulatory institutions in many countries are also taking action to superviseexcessive salary payments. For example, France and the Netherlands have set laws to prohibit bonuses if companies fail to meet their yearly performance goals.