Taylor Wimpey adds executive pay cuts to coronavirus defence measures
Housebuilder Taylor Wimpey is ramping up its coronavirus defences by cancelling a planned pay rise and bonus payments for executive management.
A two per cent annual salary increase due to come into effect on 1 April 2020 has been cancelled, while bonuses for executives have been cancelled this year.
The executive directors have taken a voluntary 30 per cent reduction in base salary and pension for the duration of the lockdown in the UK. The remuneration committee will review this if the lockdown continues beyond 30 June.
The board has supported this reduction in base salary and therefore non-executive directors will also take a 30 per cent reduction for the same period.
Sign up to Morning Wire’s Midday Update newsletter, delivered to your inbox every lunchtime
Last week the housebuilder cancelled its dividends for the year and drew down £550m in credit facilities to protect its balance sheet against the impact of Covid-19.
Taylor Wimpey said it had felt the effect of the government-mandated lockdowns in Spain and the UK. It added it had put contingency plans in place to respond to the potential changes in consumer behaviour.
It said: “Until the extent and duration of the disruption is better understood, the board believes conserving cash is in the best interests of the long term sustainability of the business.”
The government confirmed last week that construction sites could remain open during lockdown. Despite this Taylor Wimpey said it would close all its construction sites for all work except that needed to make the sites safe and secure. The housebuilder has also closed all of its show homes and sales centres.
Shares in Taylor Wimpey are down 4.23 per cent.
Get the news as it happens by following Morning Wire on Twitter.