ABS-CBN Broadcasting’s top executives, led by president CEO Carlo Katigbak, are jacking up their compensation in 2021 even though the former media giant is teetering on the edge.
ABS-CBN’s top five executives have awarded themselves with a six percent pay hike to P146.132 million in 2021 from P138.376 million in 2020.
The rest of ABS-CBN’s top management are getting a 1.5 percent hike to P1.029 billion from P1.014 billion.
Aside from Katigbak, the other ABS-CBN executives getting fatter pay slips are Aldrin Cerrado (global COO), Laurent Dyogi (TV production head), Roldeo Theodore Endrinal (content production head), and Socorro Vidanes (COO).
Management surprisingly approved the pay raise even though ABS-CBN has zero prospects of getting back its TV franchise soon.
ABS-CBN lost P13.5 billion last year and is on course to bleed more this year (it posed P1.944 billion in losses in the first quarter).
The company also laid off over 40 percent or 4,552 employees (2672 of them regular staff) in 2020 and more downsizing is expected this year especially if revenues don’t recover (advertising sales plunged 78 percent to P929 million in the first quarter even though it has been airing its programs on TV5 and A2Z channels).
ABS-CBN’s pivot to digital has so far been a big letdown as revenues are way below its sales from free TV.
Its auditor, SGV & Co., has also cast doubts on ABS-CBN continuing as
a going concern with a net a cash outflow of P2.4 billion in 2020 and net liabilities of P9.7 billion payable within one year.
Embattled ABS-CBN clarified that its top officers have not received a salary hike since 2019 and have even agreed to a pay reduction to help the network stay alive amid its financial problems.
ABS-CBN succumbed to heavy losses after lawmakers rejected its bid for franchise extension. As a result, it had to lay off nearly 5,000 employees and shut down some business units.
The network’s employees and talents also agreed to voluntary pay cuts.
“ABS-CBN has not raised the salaries of its senior management since 2019. In fact, the senior management, including its president and CEO Carlo Katigbak and COO of broadcast Cory Vidanes, continues to voluntarily accept a substantially reduced salary,” the media giant said.