SK On, under emergency management, freezes executive salaries until profitable - South Korea

SK On, a major battery manufacturer hit by the slowing market growth, has declared an emergency management system. It has frozen the annual salaries of all executives and suspended some jobs until it streamlines its organization and achieves a turnaround in the black.
The company said, "We will implement drastic changes in all areas that require change, from our business domain and the way we conduct business, to the allocation of resources and the way we operate."
The company has delegated the decision on the CEO (Chief Executive Officer), CPO (Chief Productivity Officer), and CTO (Chief Technology Officer) to the board of directors.
Some positions, such as Chief Communications Officer, will be abolished, and the positions of officers who do not achieve results will be changed at any time during the fiscal year.
If the company is unable to turn a profit in 2024, it will freeze executive salaries in fiscal 2025.
The number of flights and business expenses will also be significantly reduced. Current measures such as requiring passengers to travel in economy class when traveling overseas and arriving at work by 7 a.m. will continue.
For all employees, we maintain a work system where each employee can decide their own arrival and departure times, and we encourage efficient decision-making.
Therefore, the principle is to work from home rather than work from home. On the other hand, in order to maintain competitiveness, the policy is to support research and development (R&D) investment to the maximum extent possible. Furthermore, in order to strengthen customer response, the sales organization is being separated by area.
Decided to strengthen it.