Housebuilder Barratt has opted to reduce director salaries by 20% to preserve cash in response to the coronavirus pandemic.
It said all executive directors, the wider executive and regional managing director team, the chairman and non-executive directors had agreed a 20% voluntary reduction in base salary and fees.
The pay cuts are effective from April and will continue until the housebuilder is able to restart work on site. Directors have also waived any 2021 salary or fees increases.
Last week, Barratt said it was furloughing a large proportion of its employees, owing to the temporary closure of sales centres, construction sites and offices.
It confirmed that it is in the process of furloughing 85% of its workforce. This compares with 80% of employees at Redrow and 76% at MJ Gleeson. All Barratt employees will continue to receive 100% of their pay, at least until the end of May, it said.
The housebuilder has suspended all land buying and recruitment activity and is continuing to assess further cost-cutting measures and government funding initiatives.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
