1st Apr 2020 08:15
(Alliance News) - Housebuilder Taylor Wimpey PLC on Wednesday said it has cancelled an executive salary increase and its annual bonus in response to Covid-19.
The company's executive directors also agreed to a 30% salary and pension cut for the duration of the UK lockdown. Should the curbs continue beyond June 30, Taylor Wimpey will review "this particular matter again".
A 2% executive salary increase, which would have come into effect on Wednesday, has now been cancelled. Likewise, there will be no annual performance-based bonus for the company's executive directors.
Taylor Wimpey explained: "The decision to take a reduction in base salary is supported by the whole board and therefore the non-executive directors will also take a 30% reduction in their fees for the same period of time. The objective of these changes is to conserve cash, with a particular focus on protecting the long term financial security of the business as a whole, for the benefit of all of the company's stakeholders."
On Tuesday last week, the FTSE 100 firm cancelled its dividend, a move it said would save the company GBP500 million.
Taylor Wimpey reported 2019 results at the end of February, declaring a final dividend of 3.80 pence per share and a special payout of 10.99p. These would have cost around GBP125 million and GBP360 million respectively, the company explained.
Shares in the company were 2.6% lower at 114.45 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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