Financial services firm Plan B Group (Plan B) has made cuts to both management pay and adviser pay, as part of a company-wide savings program.
The listed firm announced it has made significant reductions in director and senior management remuneration, as well as reductions of adviser remuneration, at its annual general meeting on Tuesday.
“Given the volatile and unpredictable nature of investment markets, management’s focus is not on what we cannot control, but what we can, in particular reducing expenses,” Plan B managing director Denys Pearce said.
“Although around 70 per cent of our non-staff costs are largely fixed in the short to medium-term – including items such as audit fees, APRA levies and other regulatory and government charges – we have a company-wide program in place targeting significant savings in total operating costs in financial year 2009.”
As well as significantly reducing staff payment, Plan B has also made changes to its discretionary expenses including travel, accommodation, marketing and communication.
The firm has also cut back costs by deferring some out-sourced project costs and focusing on cost containment and productivity improvements in all business units.
“The full benefits of these initiatives will take some time to manifest completely. The company’s reduced costs base [will] position it well to maximise the earnings recovery, when markets improve and inorganic growth accelerates,” Pearce said.
“Plan B is still resourced and positioned for growth. While the rate of progress has been arrested due to the current market turmoil, we remain focused, patient and committed to our clients and shareholders alike.”
