Directors to take 30% pay cut during lockdown
Taylor Wimpey has axed the pay and bonuses of its executive team.
Last week the housebuilder announced that it would be closing all show homes, sales centres and construction sites in an attempt to handle the covid-19 pandemic.
The firm’s executive directors are taking a voluntary 30% reduction in salary and pension for the duration of the government-imposed lockdown.
Taylor Wimpey said in the event that the lockdown continues beyond 30 June, it will review this matter.
In an announcement to the City, the firm said: "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 firm said the executive directors' 2% annual salary increase, which was due to come into effect today, has also been cancelled.
The executive's annual bonus scheme has also been cancelled and there will be no cash bonus payable in respect of the company’s performance in 2020.
Taylor Wimpey said: "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."
The firm's remuneration committee said it was not proposing any amendments to the remuneration policy which has been submitted to shareholders for approval at its annual general meeting, currently scheduled for 23 April.