Redbubble cuts pay packets
E-commerce marketplace Redbubble has moved its employees to a four-day week with pro rata pay and cut executive remuneration substantially.
Interim CEO Martin Hosking ’s (pictured) pay will fall from $900,000 to $600,000 per annum, with the additional $300,000 payable later at the board’s discretion, either in equity or cash.
Redbubble’s non-executive directors will also take a 20 per cent salary hit. The company has also deferred its search for a new permanent CEO until later in the calendar year.
Redbubble, a business which offers a platform for independent artists to sell their own designs, says its sales have been only modestly hurt by the coronavirus downturn and its financial position is solid with a cash balance of $31 million as of March 31 and zero debt.
However, it has halted all discretionary spending across the group until June 30, subject to review.
Harvey Norman leaders take pay cut
Harvey Norman’s (pictured) executive team and non-executive directors have joined large numbers of senior staff around the country in cutting their pay packets during the current coronavirus crisis.
The team have opted to forgo 20 per cent of their salaries and director’s fees respectively for the next three months.
“In the present environment, the board believes that preserving cash is the most prudent course of action to protect shareholder value,” company secretary Chris Mentis wrote in a letter to shareholders.
Harvey Norman has also revoked its plan to pay a 12¢ interim dividend. The decision will keep $149.5 million of cash in the business.
The announcement saw shares fall 7 per cent, from $2.97 to $2.76. By Friday, shares had rebounded slightly to $2.77 and closed on Monday at $2.78.
Harvey Norman chairman Gerry Harvey bought $2 million of company shares at the beginning of the current market route, at about $3.20 per share. He picked them up, he told the Sydney Morning Herald, because he thought they were a “bargain”, but admitted his timing was wrong as the stock later dropped as low as $2.46.
The decision will keep $149.5 million of cash in the business.
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