Telegraph reported that directors of Severfield Rowen have agreed to a 20% cut in their basic salaries for 2010 following a pay freeze this year as the company braces for further difficult trading conditions.

The pay cut agreement comes ahead of an announcement, following the conclusion of a consultation process that could see large scale redundancies among the group's 1300 strong workforce.

Mr Tom Haughey CEO of Severfield Rowen said that despite reporting a 19% increase in first half profits GBP 24.8 million pre tax, the board had agreed to the salary concession in the face of the deteriorating business outlook.

He said that the 7 directors, including 4 executives and a further 5 members of the executive management committee have agreed to the pay cut, which will save the group about GBP 400,000.

(Sourced from www.telegraph.co.uk)