GVC execs take voluntary 20% pay cut to save Covid-19 costs
Directors and executive committee members to forgo 2020 bonuses as Kenny Alexander reassures employees over 2019 add-ons
GVC’s executive committee and board of directors will take a voluntary 20% pay cut in basic salary and fees for three months from 1 May as the operator seeks to save costs during the coronavirus pandemic.
In addition, the board and executive committee has confirmed it will not take bonuses for 2020 as the absence of sports continues to negatively impact business.
The London-listed operator first revealed it was conducting a review of its 2020 remuneration policy in its Q1 2020 trading update.
Similar executive level pay cuts have already been implemented at William Hill and Rank Group.
In March, EGR revealed GVC had postponed payment of a £2.5m 2019 performance bonus for employees because it needed to “focus resources on securing jobs and keeping the business viable” during the global pandemic.
Updating employees in an email seen by EGR Intel, GVC CEO Kenny Alexander said: “I’d like to reiterate that the 2019 colleague bonus delay is still very much that – a delay. We can’t give any further clarity on when we’ll be in a position to pay those, but it is still when and not if.”
Staff have since received confirmation of their bonuses in writing but are still waiting for the sums.
In April, GVC instigated measures to reduce its monthly EBITDA impact from Covid-19 to £50m by applying for business rates relief on its retail portfolio.
In addition, GVC utilised the UK government’s furlough scheme to pay its retail employees, which will be reviewed on 31 May.
Earlier this week, the operator agreed a £535m revolving credit facility with existing banking partners to provide “further flexibility” to the business as it navigates the challenges of Covid-19.