Tepco to Cut Worker, Board Pay as Much as 50% to Pare Costs

Tokyo Electric Power Co., battling radiation leaks from a nuclear reactor crippled by the March 11 earthquake and tsunami, will reduce compensation for workers, management and executives to cut costs.

Annual remuneration for board members will be reduced by 50 percent, while pay for managers and workers will be cut by 25 percent and 20 percent respectively, the company said today in a statement on its website. The company known as Tepco will not hire new graduates next fiscal year, according to the statement.

Tepco, Japan’s largest power company, expects to save about 54 billion yen ($659 million) a year from the pay cuts, according to the statement. The utility faces compensation claims of as much as 11 trillion yen for the world’s worst nuclear crisis since Chernobyl in 1986, Bank of America Corp.’s Merrill Lynch said last month.

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