Marshalls' board to take 20 per cent cut in remuneration during pandemic

THE board at Marshalls plc today revealed that it had unanimously agreed to take an immediate 20 per cent reduction in its remuneration for the duration of the coronavirus crisis.

Tuesday, 14th April 2020, 10:55 am
Updated Tuesday, 14th April 2020, 10:58 am

Marshalls, which is a specialist landscape products group, has issued a further update on the measures it is taking in response to the COVID-19 outbreak.

The statement said: "The group is continuing to monitor the current situation and is taking all appropriate steps to support the long-term interests of the business, its employees and other stakeholders.

"Marshalls has now implemented a detailed operational plan which includes the temporary cessation of certain operations across its manufacturing network. Our operational planning continues to be dynamic and capable of reacting to the changing environment.

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City centres have become deserted during the pandemic.

The statement said: "We are closely monitoring cash flows to ensure that the business is in a strong position for eventual recovery. Discretionary expenditure is being controlled and non-essential capital expenditure has been deferred. No actions are being taken at the expense of health and safety."

"The group is utilising the Government's scheme which allows the deferral of tax payments that would normally have been payable in the period to 30 June 2020 and is also utilising the furlough arrangements that are now in place."

"With effect from 1 April 2020 until further notice, the Board has unanimously agreed to take an immediate 20 per cent reduction in its remuneration for the duration of the crisis.

"The effect of this will be to reduce the salary of the Executive Directors by 20 per cent, including pension contributions, salary supplement and 2020 bonus payments which are calculated as a percentage of salary, and to reduce the annual fees of the Chair and Non-Executive Directors by 20 per cent. Other members of senior management have also voluntarily agreed similar reductions."

Marshall said that its banking partners, NatWest, Lloyds and HSBC, continue to be supportive.

The statement added: "Each bank has confirmed its full support for an additional £30 million, 12 month committed RCF facility to be provided. The discussions held have been positive and, subject to the finalisation of documentation, are now well advanced. We anticipate the documentation process to be completed by the end of April. These additional facilities comprise £90 million in total and will strengthen the Group's headroom as we continue to manage the current situation.

"Including these additional facilities, the group will have total bank facilities of £255 million of which £230 million will be committed."

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