// Burberry cuts directors’ pay by 20% to save money for charity
// The retailer said it will not use the government’s coronavirus job retention scheme
Burberry has temporarily axed its directors’ salaries by 20 per cent and said it will not rely on the government’s coronavirus job retention scheme for employees unable to work due the Covid-19 pandemic.
The luxury retailer’s chief executive Marco Gobbetti announced on Friday that he and the rest of the board of directors were voluntarily taking a 20 per cent cut in their base salary and fees between April and June.
The money saved will be donated to the Burberry Foundation Covid-19 Community Fund to help support struggling communities by supplying personal protective equipment (PPE) and providing food banks.
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“Since the outbreak of Covid-19, our priority has been the safety and wellbeing of our employees, our customers and our communities,” Gobbetti said.
“While we continue to take mitigating actions to contain our costs and protect our financial position, we are also committed to safeguarding jobs and supporting the relief efforts during this global health emergency.”
In other news, Burberry has transformed its West Yorkshire factory from making its beloved trench coats into manufacturing PPE for medical and care workers.
“We are also sourcing surgical masks through our supply chain and supplying them to the NHS and charities such as Marie Curie, which provides nursing care for families living with terminal illness in the UK,” Burberry said.
Burberry has since donated more than 100,000 pieces of PPE.
The group, which warned last month its fourth-quarter sales would be 30 per cent lower as a result of the pandemic, said it was continuing to look hard at its cost base, and reducing spend on non-essential areas.
Burberry also said it will not rely on government support in the UK, where more than a third of its workers are based.
Therefore, the retailer has not utilised the government’s furlough scheme, which pays employees 80 per cent of their salary.
The workers who cant work are being paid in full by Burberry.
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