New York-based Ralph Lauren Corp. on April 6 said it would cut executive pay and put staff on furlough to mitigate the impact of the coronavirus crisis.
Among the measures being introduced, Executive Chairman and Chief Creative Officer Ralph Lauren will forgo his bonus for fiscal 2020 and his whole salary for fiscal 2021. President and CEO Patrice Louvet will cede 50% of his salary during the crisis.
Other members of the executive committee will take 20% reductions on their salaries for the first quarter of fiscal 2021, while board directors will forgo their quarterly cash compensation.
Part of the money saved will be allocated to the company's employee relief fund, which will provide grants to staff facing financial hardship, Ralph Lauren said in a statement.
Employees whose stores are shut and whose jobs cannot be done remotely will be placed on unpaid temporary furlough from April 12. They will, however, continue to receive benefits, including health insurance.
Ralph Lauren has drawn $475 million from its global credit facility and paused share buyback programs. Most of its stores in South Korea and China are now open, having been shut down in early February.