PCCW, the city's largest telecommunications service provider, slashed 32 per cent off its directors' pay last year, when it suffered a 21 per cent fall in net profit, the company said in its annual report yesterday. Jack So Chak-kwong, who is leaving his posts as deputy chairman and managing director, received no discretionary bonus for last year, compared with HK$8 million in 2005, the report said. The overall remuneration for Mr So, whose basic salary rose to HK$16.62 million from HK$15 million in 2005, was reduced by 26 per cent for the year. Mr So will leave the company at the end of this month. He resigned in part due to the cut in his performance bonus, sources have said. The company last year paid HK$78 million to its directors, compared with HK$116 million in 2005. The bonus paid for the year was 68 per cent lower at HK$16 million. Spending on salaries and allowances dropped 6 per cent to HK$56.2 million. Company chairman Richard Li Tzar-kai did not receive any bonus or allowance last year, compared with the HK$4.29 million accommodation allowance he got in 2005. In his statement in the report, Mr Li wrote: 'With a healthy economy, I believe there is room for the management team to do better.' Alex Arena, the company's managing director-designate, was one of only two directors awarded bonuses and allowances. He received a bonus of HK$8.83 million on top of a basic salary of HK$11.48 million. Mr Arena did not get a pay increase last year. Robert Lee Chi-hong, the chief executive of Pacific Century Premium Developments, the company's property arm, had his bonus slightly reduced to HK$7.27 million. He had a basic salary of HK$11 million. Shares of PCCW fell 0.41 per cent yesterday to close at HK$4.88.