Bosses' pay cut as Esh Group goes into red

Nov 11 2009 by Chris Knox, The Journal

THE top executives at one of the region's largest private businesses have taken a 30% pay cut after axing 200 jobs and seeing the firm plummet into the red.

The eight board members of the Durham-based, £150m Esh Group agreed to the salary cut to demonstrate their “solidarity with their company’s workforce”.

The reduction means chief executive Brian Manning has seen his annual salary cut from £250,000 to £175,000. Former Newcastle United chairman Freddie Fletcher, Esh’s chief executive, will also sustain a 30% cut.

This comes as the construction and civil engineering group posted a loss of £6.4m in 2008 compared to the previous year’s £10m pre-tax profit.

Mr Manning said: “All board members have taken the drastic decision to take a pay cut as we want to show solidarity to our workforce as well as be an example going forward.

“The pay cuts should save the company £150,000, which is necessary as we continue to trade through this tough period.”

Mr Fletcher said: “This company is still operating well and remains in good shape, despite the wider picture in the housebuilding community.

“Esh had to make a number of reductions at Dunelm Homes in order to keep it in good shape going forward.

“I think making the pay cuts was exactly the right thing to do and is showing staff at Esh that we are all in this together.”