Steven Madden Ltd. will furlough a "significant number" of its employees, while its executives will either forgo their salaries or take pay cuts as part of the company's measures to mitigate the impact of the coronavirus outbreak, according to a March 30 filing to the SEC.
The U.S. footwear retailer said founder and creative and design chief Steve Madden, as well as Chairman and CEO Edward Rosenfeld, will forgo their salaries, while the salaries of the group's president, CFO, COO and chief merchandising officer will be reduced by 30%, all effective April 1.
Wages of employees who earn more than $100,000 per year will also be reduced "by graduated amounts," the company said. Steve Madden added that its directors have agreed to suspend all of their cash compensation.
Additionally, the company said it will suspend its quarterly cash dividend and stock repurchases to support its precautionary measures to maintain ample liquidity and financial flexibility during the global health crisis.
Steve Madden has also drawn $30 million from its credit facility.
In New York trading March 30, Steven Madden's stock fell 4.35% to $22.88.