EDL-Gen staff to get 10 percent pay rise

EDL-Gen staff to get 10 percent pay rise

EDL-Gen employees will be rewarded with a 10 percent increase in their basic salary this year after the public company made a sizeable profit in 2011.

According to EDL-Gen's website, the Board of Directors of the electricity generating company will propose a 10 percent increase to employees' basic salary, at the annual shareholders' conference scheduled for early next month.

The website does not give any details on the basic salary that EDL-Gen employees currently earn. Nevertheless this is important information, as people considering buying EDL-Gen shares at the Lao Securities Exchange need to know what the company's operating costs are.

EDL-Gen administration officials said they were unable to give details of the basic salary currently paid to staff, saying they could not release any information to the media without the approval of the Lao Securities and Exchange Commission.

In general, public companies are obliged to disclose all information to investors and do not need to obtain the approval of the Lao Securities and Exchange Commission if the information relates to facts, such as salary figures.

The role of the Lao Securities and Exchange Commission is to check whether information, such as a company's financial statement, is accurate before it is publicly released, ensuring that shareholders are kept fully informed.

According to EDL-Gen officials, who hold 70 percent of shares in the company, the basic salary of EDL and EDL-Gen employees has remained the same in recent years.

Those in management positions such as division and department directors also receive fuel allowance coupons.

EDL-Gen Deputy Managing Director Dr Bounsalong Southidara told Vientiane Times the Board of Directors had decided to ask for a 10 percent basic salary increase because of rising inflation, which is negatively affecting employees' standard of living.

There was wide speculation that EDL-Gen employees wanted their salary to be higher than that paid to the staff of EDL, which is 100 percent government owned. It is believed the salary increase will stimulate employees to work harder and generate more profit.

According to BCEL-KT, one of two stockbrokers in Laos, EDL-Gen was projected to generate total revenue of about US$110 million in 2011, a significant increase from US$95 million in 2010, thanks to heavy rainfall which boosted electricity generation.

The company plans to pay a dividend of about 278 billion kip (320 kip per share) for the second six months of 2011.

vientiane times