Burberry to maintain employee pay as execs take pay cut
Luxury fashion brand Burberry said on Friday that its senior leaders and directors will take a voluntary pay cut to preserve cash during the coronavirus pandemic.
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The company said senior leaders and the board of directors have agreed to a 20% reduction in pay from April to June. The equivalent cash amount will be donated to the Burberry Foundation Covid-19 Community Fund.
In addition, Burberry said it will maintain base pay for all employees unable to fulfil their roles because of store or site closures and that it will not rely on government support for jobs in the UK, where more than a third of its employees are based.
The company said its trench coat factory in Castleford is now manufacturing non-surgical gowns and supplying them to the NHS. It is also sourcing surgical masks through its supply chain and supplying them to the NHS and charities such as Marie Curie, which provides nursing care for families living with terminal illness in the UK. To date, it has donated more than 100,000 pieces of PPE.
Chief executive officer Marco Gobbetti said: "While we continue to take mitigating actions to contain our costs and protect our financial position, we are also committed to safeguarding jobs and supporting the relief efforts during this global health emergency."