L Brands Slashes Executive Pay, Dividend Payments And Furloughs Employees
28 March 2020 - 7:00AM
Dow Jones News
By Kimberly Chin
L Brands Inc. has cut the pay of its senior executives,
suspended dividend payments and furloughed most store employees as
the retailer grapples with the coronavirus pandemic.
The Victoria's Secret parent said it will temporarily shave 20%
off the base salary of its senior vice presidents and higher, and
will suspend the cash compensation for Chief Executive and Chairman
Les Wexner and other board members. It will also defer annual merit
raises.
Additionally, the company has postponed quarterly dividend
payments beginning in the second quarter. Its quarterly dividend
was set at 30 cents a share. Last week, the company said it has
drawn down $950 million from its revolving-credit facility of $1
billion. L Brands said it has more than $2 billion in cash.
Most store employees, including those who can't work from home
or can't support the ecommerce business, will be furloughed,
effective April 6, the company said. L Brands will continue to
grant existing healthcare benefits to its furloughed employees.
The company will also extend the closures of its Bath & Body
Works, Victoria's Secret and PINK stores in the U.S. and Canada
beyond its original reopening date of March 29. It didn't provide
further guidance on when stores will reopen. The company said it
will continue to pay employees through April 4.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
March 27, 2020 15:45 ET (19:45 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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