G8 announces executive leadership salary cuts as part of COVID-19 cost reduction plan
G8 Education has confirmed that the remuneration packages of the executive leadership team will be reduced by 20 per cent as the Group continues to execute on its cost minimisation plans in light of the financial impact of COVID-19 on the organisation.
The reduction will be in place for 6 months effective 1 May 2020 through to 31 October 2020.
The company confirmed that CEO and Managing Director Gary Carroll’s annual base fixed remuneration will as a result fall from $840,000 to $672,000 (20 per cent) for that period, and that similar reductions would be passed on to all other members of the executive leadership team.
It is also understood that the Board of Directors have been included in the program, with 20 per cent reductions of salaries for six months applied.
The decision to reduce the executive leadership teams salaries, and those of the Board, is consistent with a set of operating measures outlined in the company’s investor presentation for the recent capital raising which included an illustrative target to reduce wage costs across the organisation by 10 per cent per month.
Other measures to support wage reduction initiatives cited include working with G8’s centre based and support office teams to manage costs through optimisation of team rostering, an increase in flexible working arrangements and initiatives encouraging team members to take accrued annual leave.
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