The company also waived the directors’ fees for 2008 and reduced the senior leaders’ base salaries between 15% and 35%. According to the company, all of these value-added measures are aimed at building a stronger Parkway with enhanced capabilities that will enable it to better serve its patients and develop future market opportunities more effectively for its long-term regional growth in 2010 and beyond.
Since July 2008, the group has undertaken a detailed review of its Asian operations and implemented various cost containment measures throughout its operations including maximizing operational synergy benefits from site to site across Asia, implementing economies of scale through centralized procurement, optimizing labor productivity as well as freezing non-clinical corporate headcount and overall business travel, said Parkway.
Lim Cheok Peng, managing director and CEO of Parkway Holdings, said: The group has weathered past crises in 1997 and in 2003 very well. However, this time, we need to take a more cautious approach to everything we do in anticipation of the expected impact of the current global economic challenges.
While we are concerned about the impact today’s decision will have on our employees and their families, our leadership is making every effort to ensure that the affected employees are treated in a fair and appropriate manner. The company is committed to helping these employees through a variety of outplacement programs developed to assist them during this difficult period.