Macy's CEO tells employees he won't be paid during the coronavirus crisis
- The CEO of Macy's will not be recieving any compensation amid the coronavirus crisis.
- In an email to employees, CEO Jeff Gennette said that the company must take "unusual measures to conserve cash throughout the crisis."
- Directors and more senior workers will also see a reduction in pay from April 1 that will continue throughout the pandemic.
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The CEO of Macy's said he will not be receiving any compensation from the company amid the coronavirus pandemic.
In an email to employees on Wednesday, CEO Jeff Gennette said that Macy's must take "unusual measures to conserve cash throughout the crisis," adding that the department store chain had frozen hiring and deferred capital spend. It is also extending its payment terms, among other measures.
In addition, all directors and more senior employees will see a reduction in pay starting April, continuing throughout the crisis. The company is also deferring the payment of bonuses and merit increases this year.
Gennette said in the email that he would receive "no compensation," without specifying how long that would last. A spokesperson for the company later confirmed to Business Insider that he would not be paid for the duration of the crisis.
At this point, he isn't ruling out layoffs.
"Even with government support, we may need to take additional actions that will directly impact our great colleagues," Gennette wrote in the email, adding that this would be its "last resort."
He continued: "If we do require furloughs or layoffs, it will be in order to ensure the survival of the company."
Macy's is one of many retailers across the world to have been severely impacted by the coronavirus outbreak.
Gennette wrote that while the initial plan had been to reopen its stores on April 1, this plan is now looking "highly unlikely." Macy's stores closed on March 17.
"We have no way of knowing how long our stores will remain closed, but we believe it will be at least several weeks before we have a clear line of sight," he wrote.
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