Fashion

Primark bosses take 50 percent pay cut to mitigate Covid-19 impact


Primark bosses take 50 percent pay cut to mitigate Covid-19 impact

Primark parent company Associated British Foods (AB Foods) has announced
it is cutting the pay of its leadership team in a bid to save costs and
mitigate the impact of Covid-19.

Primark CEO Paul Marchant has requested that his base pay be temporarily
halved.

AB Foods CEO George Weston and finance director John Bason have
requested the same, while non-executive directors of the company’s board,
including chairman Michael McLintock, have decided their fees should be
reduced temporarily by 25 percent. They will also not be paid bonuses
related to the current financial year.

This comes after AB Foods last month warned that Primark would lose 650
million pounds a month in sales following the government’s closure of all ‘non-essential’
stores
.

“The board, including the executive management team, believes that these
steps are appropriate given its expectation that full-year earnings will
now be much lower than envisaged at the start of the financial year. The
board is acutely aware that many Primark employees will see their
livelihoods affected by Covid-19,” AB Foods said in a statement.

It added that it has developed and implemented measures to cut the
operating costs at Primark, and that the group has to date a strong balance
sheet and 1.7 billion pounds of cash.

Photo credit: FashionUnited



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