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Why CEOs are giving up their salaries during the coronavirus crisis
Key Excerpts from Article on Website of CNN News
Posted: April 7th, 2020
https://www.cnn.com/2020/03/26/investing/ceo-giving-up-pay-c...
Coronavirus has hit companies hard and fast over the past several weeks prompting calls for industry bailouts and dramatic measures to cut costs. Among the steps some major corporations are taking to mitigate the consequences of the outbreak are pay cuts to CEOs and other top executives. Executive pay cuts alone aren't likely to have a significant impact on companies' bottom lines or provide a boost to lower-paid employees further down the org chart. But they send an important message. Airlines and travel companies, one of the industries hit hardest by the outbreak early on, were among the first to take such a step, including Delta (DAL), Alaska (ALK), United Airlines (UAL) and others, which all announced CEO pay cuts, and other executive compensation reductions. Marriott (MAR), the world's largest hotel chain, said last week that CEO Arne Sorenson will not take home any salary for the rest of the year, and the rest of the executive team will take a 50% pay cut. The announcement came at the same time that the company said it would begin furloughing what could be tens of thousands of hotel workers, from housekeepers to general managers. On Wednesday, Dick's Sporting Goods (DKS) also announced its CEO Ed Stack and President Lauren Hobart will forgo their salaries, except for an amount covering company-provided benefits. The company's other named executive officers will take a 50% reduction in base salary. Other companies, including Ford (F), GE (GESLX) and Lyft (LYFT) have taken similar steps.
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