UTStarcom to cut directors’ pay by up to 61 pct

0
20

SAN FRANCISCO (AP) ? Telecommunications company UTStarcom Holdings Corp. said Tuesday that it will cut salaries for its board of directors to reduce costs.

The company, which sells services to cable TV and telecommunications providers, said the cuts take effect in the current quarter and will result in a 61 percent reduction in total compensation annually. That includes a 42 percent cut in cash compensation.

Jack Lu, the company’s CEO, said the move is part of the company’s efforts to cut costs and reflects its “commitment to good corporate governance practices after we qualified as a foreign private issuer.” The company was based in Alameda, Calif., until last year and is now headquartered in Beijing.

In the three months ending in June, UTStarcom reported its first profitable quarter after 24 consecutive quarters of losses. Lu said in announcing the earnings this month that the company will still need “more discipline and more meaningful progress on the top line to achieve sustainable profitability.”