By Will Sturgeon, 15 August 2001 09:22
NEWS Kevin Maxwell has taken a 75 per cent pay cut to try and save cash at ailing US telco Telemonde. Maxwell, the son of disgraced and deceased millionaire Robert Maxwell, has taken the cut, along with other executives at the company, for at least the next six months. Under a contract set to run until 30 June 2002 Maxwell was entitled to claim £240,000 per year - however he will now be taking only £60,000 of that amount. Telemonde's sales fell in the second quarter to $3.8m from $18.6m for the corresponding quarter of 2000. Losses for the quarter rose to $15m from $2.5m. The cuts have been taken to try and maintain cash reserves at the company as it struggles through the worst of the current telecoms slowdown. Telemonde is indebted to a number of other telcos - owing Global Crossing $10m and Worldcom $17.8m. Total debts for the company are $61.6m.
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