These CEOs are giving up their salaries to help employees amid coronavirus pandemic
Chief executives of some big companies are taking pay cuts to help workers struggling amid the coronavirus pandemic.
The COVID-19 crisis has left millions of Americans out of work as businesses shut down, people are ordered to stay home and travel plans change. Unemployment numbers in the U.S. have broken records, with more than 3 million people reportedly losing their jobs during the week of March 14-21.
Here are some of the major companies in which CEOs are giving up or cutting their salaries during the coronavirus pandemic.
Marriott
Arne Sorenson, president and CEO of Marriott International, said in a video posted to Twitter last week that he won’t be taking a salary this year.
The company’s executive team will only be paid half their salaries, he said.
In response to the pandemic, Marriott has already reduced staff and closed some hotels and parts of others. It’s also furloughing what could be tens of thousands of employees, Business Insider reports.
Marriott, the world’s largest hotel chain, hopes these measures and others will cut costs by $140 million.
“There is simply nothing worse than telling highly valued associates, people who are the very heart of this company, that their roles are being impacted by events completely outside of their control,” Sorenson said in the video. “I’ve never been more determined to see us through than I am at this moment.”
Delta
Delta Air Lines CEO Ed Bastian said a couple weeks ago that he won’t be taking a salary for six months.
Additionally, all Delta officers will have their pay cut in half and the board of directors will forego its compensation for six months. The company has asked some employees to take voluntary leaves.
Delta said it already cut flights and froze hiring.
“In this unpredictable environment we can’t take any options off the table, but any steps that would affect your jobs or pay rates would be the absolute last thing we would do, and only if necessary to secure Delta’s long-term future,” Bastian said.
Hersha
Hersha Hospitality Trust, which owns 48 hotels across the country, said last week that its CEO and COO will have their salaries cut in half.
The board of trustees will take all of its payments in stock for the rest of the year.
The company said it has previously closed hotels, reduced operations and closed bars and restaurants.
“The Company’s top priority during this uncertain time is maintaining adequate liquidity as we manage the Company under the press and uncertainty of the COVID-19 virus and its effect on the travel and hospitality industries,” the release says.
Allegiant
The president and CEO of Allegiant won’t take a salary, and other officers in the company will take half of theirs, the company said last week.
The travel company has already cut capacity on flights and frozen hiring amid the pandemic.
Texas Roadhouse
Wayne Kent Taylor, CEO and president of Texas Roadhouse, has given up his base salary and bonuses for the rest of the year, according to SEC documents.
His salary will instead go to “assist front-line hourly restaurant employees.”
Some of the chain’s restaurants have been forced to close their dining rooms to comply with state orders, but have ramped up to-go services in response.
This story was originally published March 26, 2020 at 2:39 PM with the headline "These CEOs are giving up their salaries to help employees amid coronavirus pandemic."
