September 1998

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Some salaries are down in CSY to help HP's bottom line

In the light of the fading growth at HP, the company introduced a novel expense-cutting measure. The top 2,400 HP executives took a 5 percent pay cut through the end of this fiscal year. A few of the very top players in the Commercial Systems Division (CSY) were among the dedicated managers taking home less, according to sources inside CSY. Trouble in Asian economies just won’t go away, and that’s a locale where HP built its growth last year. The cuts are designed to offset the Asian downturn in orders and sales. The HP 3000 has stayed out of that harm’s way because it’s not as established in Asia as in Europe and the Americas. The Wall Street bloodbath in late August continued the month’s downward push on HP stock price — sliding from the 60s into the 40s. But nobody was immune, including Dell and IBM, from that mini-crash.


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