Restaurant Group execs take pay cut; banking facilities increased

Wagamama owner Restaurant Group announced extra flexibility in its banking facilities on Monday as it said its executive directors have agreed to a pay cut amid the coronavirus outbreak.

The company, which also owns Chiquito's and Frankie & Benny’s, said its lending group has agreed there will be no covenant test at the half year. In addition, Santander has increased its super senior revolving credit facility to Wagamama to £35m from £20m.

Restaurant Group's executive directors have decided to reduce their base salaries from 1 April for three months. Chief executive Andy Hornby has volunteered to take a 40% pay cut, while chief financial officer Kirk Davis has volunteered to take a 20% pay reduction for the same period. They have both agreed to forgo their 2019 bonuses.

In light of the "very significant" number of employees that have been furloughed and the pay cuts taken by the executive directors, the non-executive directors have also proposed to reduce their fees by 40%.

The company also said it has decided to reduce the overall number of non-executives from six to five, with Mike Tye offering to step down as a non-exec director and chairman of the Remuneration Committee with immediate effect.

Chief executive Andy Hornby said: "These are unprecedented times for our business and our sector. Against this backdrop we have taken decisive action to improve our liquidity, reduce our cost base and downsize our operations."