Stora Enso’s chief executive and other directors have decided to take a pay cut this year after the forest products giant reported a net loss of €654m for 2008.
CEO Jouko Karvinen and other group executive team members will forgo one month’s pay from their salaries, while the CEO’s cash bonus for 2008 will be converted to a deferred three-year share programme. 2009 bonuses for managers will be paid in Stora Enso shares to be received in 2011.
Stora Enso recorded sales of €11.028bn in 2008, with operating profit excluding non-recurring items and fair valuations totalling €388.4m.
The wood products division saw sales of €1.5bn, down 18.9% on 2007 and an operating loss of €67.5m, a dip of 114.8%.
The company said cost-saving measures and lower raw material costs could not compensate for lower sales prices.
“The drop in customer demand in the last quarter of 2008 turned out to be as severe as we expected and warned,” said Mr Karvinen.
“The operating environment for at least the early part of 2009 will be as challenging as at the end of 2008. We will only manufacture when customers buy our product, rather than building our inventory,” he added.
He said the company was starting 2009 with minimum inventory levels.
