The Nordstrom brothers are declining to take a salary from April through September.
The department store retailer said that its executive leadership group will forgo a part of their salary from April through September and that CEO Erik Nordstrom and chief brand officer Peter Nordstrom will decline a salary during that time also. The company's board is also forgoing its cash compensation for six months.
Nordstrom also said that it is planning to extend its store closures for at least another week, through April 5, due to the pandemic. The retailer will offer store employees pay through April 5, but at that point it plans to furlough a portion of corporate employees for six weeks. The impacted employees who are currently enrolled in our benefits program will continue to receive full benefits.
“This is the most difficult decision we've made in our company's long history, because it impacts the people who matter most — you,” the Nordstrom brothers said in a letter to employees. “This incredibly tough decision enables us to continue providing much-needed benefits, including health care, to our people. It means that when life goes back to normal, as we know it eventually will, we can keep providing consistent employment and pay to tens of thousands of people.”
Nordstrom noted that, since March 17, it has provided ongoing pay and benefits to all Nordstrom store employees impacted by our temporary store closures. It will offer store employees an additional week of pay through April 5, as well as benefits through April.
Earlier this week, Nordstrom said it was suspending quarterly cash dividends and share repurchases. It has also suspended hiring and is targeting further reductions of more than $500 million in operating expenses, capital expenditures and working capital. This includes ongoing efforts to realign inventory to sales trends.