- Huw Hughes |
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.
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