Ralph Lauren forgoing salary for full year as more companies announce pay cuts
More retail companies are furloughing employees and announcing executive pay cuts — some to greater degrees than others — as stores remain closed indefinitely during the COVID-19 pandemic.
Here is a look at some of the latest announcements:
• REI will begin an unpaid 90-day furlough of the majority of its retail and field employees, beginning on April 15. During this period, all health and welfare benefits will continue as normal for all eligible furloughed employees. The sporting goods and apparel retailer is also making overall reductions its headquarters workforce, with all the impacted full-time employees to receive severance along with outplacement services and support.
Eric Artz, president and CEO of REI, is forfeiting 100% of his base salary for the next six months, as well as forfeiting all of my incentive eligibility for 2020. His entire senior leadership team will take a 20% pay reduction for the next six months and will also forfeit all of their incentive eligibility for 2020. Board members are forfeiting their fees for the next six months as well.
• Ralph Lauren will furlough all store employees where stores are closed along with employees whose jobs “are not conducive to continued remote working."
Company namesake Ralph Lauren will forego his salary for the 2021 fiscal year as well as any bonus from the 2020 fiscal year. Company CEO Patrice Louvet will take a 50% pay cut during the crisis, and every member of the retailer’s executive and global team — some 140 executives in all — will reduce their salaries by 20% for the first quarter of fiscal 2021.
• TJX Companies, which had about 286,000 employees as of Feb. 1, is implementing temporary furloughs for most of its retail store and distribution center employees after April 11, according to its latest filing. The off-price giant will provide benefits to eligible employees at no cost during the furlough period.
Also, CEO Ernie Herrman and executive chairman Carol Meyrowitz have agreed to have their base salaries reduced by 30% for a defined period, from April 12 to July 4.
• Abercrombie & Fitch said it would furlough all of its store employees in the North America and EMEA regions, starting on April 12. The retailer will continue to pay health premiums for eligible associates who were affected by this decision.
In addition, Abercrombie will reduce hours and pay for about 15% of corporate associates, while executives at the VP level and higher will take pay cuts of 10% to 33%.
• Party City Holdco Inc. has furloughed 90% of its store staff, as well as 70% of manufacturing, wholesale and corporate staff. The company, which has approximately 18,300 employees, will continue to pay for health benefits.
The base salary of Brad Weston, Party City CEO, will be reduced by 50%, and CFO Todd Vogensen will cut his pay by 30%. The remaining senior executives will reduce their base pay by 15% to 20%.