ASB to freeze pay for staff earning over NZ$50k and cut exec pay to avoid job cuts

ASB Bank has announced it will freeze pay for staff earning more than NZ$50,000 a year and will cut executive pay in a drive to avoid redundancies. ASB staff would also be able to volunteer to reduce their work hours and the bonus pool to be paid in August would be cut significantly, ASB said. "These cost reductions are aimed at protecting jobs at ASB in the face of pressures on revenue driven by the global recession," ASB CEO Charles Pink said in a statement. "We recognise that a pay freeze for staff earning over NZ$50,000 is a significant step and, in that spirit, I and my executive team volunteered to lead by example and take a reduction in our own salaries. This reduction will take effect on 1 July," Pink said. ASB said last week it would not be moving any New Zealand banking operations or roles offshore. "Redundancies have always been the absolute last resort at ASB and we are determined to do whatever we can to ensure that this remains the case in our business in the future. This can best be achieved by taking action to save costs responsibly now," Pink said.