Unibail-Rodamco-Westfield, a multinational property giant that operates numerous shopping centers across the globe, has made the decision to implement pay cuts for its senior executives in response to the ongoing COVID-19 pandemic. This move is aimed at utilizing the reduced salaries and fees to assist in the efforts to combat the virus in the countries where the company operates.

In a display of solidarity with all employees, the Group CEO Christophe Cuvillier, Group CFO Jaap Tonckens, and other members of the Senior Management Team have voluntarily agreed to reduce their remuneration by 25% for the duration of the partial activity measures. Additionally, the members of the Supervisory Board have also agreed to slash their fees by the same percentage. Furthermore, the senior executives of the company’s US and European management committees will experience a 20% reduction in their fixed incomes during this period.

This decision has been made as Unibail-Rodamco-Westfield finds itself grappling with challenges in the retail sector, particularly affecting retail landlords. Recently, the company’s credit rating was downgraded by rating agency Fitch due to its high levels of debt and the expectation of further weaknesses in the retail industry. Fitch predicts that this will hinder the company’s ability to reduce its debt and increase rents in the future.

Nevertheless, Unibail-Rodamco-Westfield remains steadfast in its commitment to its employees and the communities it serves. The pay cuts for senior executives demonstrate the company’s unwavering dedication to supporting the fight against the coronavirus and standing in solidarity with its workforce during this challenging period. The company’s primary focus is to ensure the well-being of its staff while navigating the ongoing crisis and ensuring its long-term financial stability.

Useful links:

Unibail-Rodamco-Westfield Official Website

Fitch Ratings Coronavirus Updates