Rio Tinto freeze salaries globally from the CEO down
RIO Tinto have made the cost-saving move to freeze salaries globally…from the CEO down.
The multinational metals and mining corporation will also reduce travel expenditure across the board, and scrutinise contractor and consultancy spending.
As reported by Australian Mining, the decisions were revealed in an internal email written by CEO Sam Walsh.
"Late last year we saw market prices continue to rapidly fall. What we see ahead is very sobering," he said.
"While our travel costs have come down, they are still too high and we need to make better use of the technology that enables us to interact with each other remotely.
"I have asked ExCo (Executive Council) members to reduce their travel commitments for 2016, and I have cancelled numerous trips from my own calendar. Everyone needs to do the same."
Mr Walsh said he anticipated 2016 to be a tough year with prices for commodities "now around 2005 levels or lower", and some "down as much as 80% from their highs and nearing long-term historic averages".
He said the situation was "not temporary," and attributed much of the pressures to slow economic growth in China with its transition from infrastructure to consumer spending, in addition to the economic crisis of 2009.