McGrath closes offices, slashes executive pay in response to Covid-19 uncertainty
6 April 2020, Written by Business News Australia
McGrath (ASX: MEA) CEO Geoff Lucas will take a sizeable pay cut as his real estate group embarks on a crisis management plan to save cash.
CEO and board remuneration will be slashed significantly by 40 per cent in May, June and July 2020, while all staff earning above $70,000 per annum will have their salaries cut by 30 per cent.
The company will also be closing certain company offices and immediately ceasing all discretionary expenditure and non-essential spending.
These new measures come in addition previously announced plans to cancel all public auctions and open house inspections.
"As previously announced, McGrath is well equipped to operate in this challenging environment," says McGrath CEO Geoff Lucas.
"We have moved quickly to use the latest technology to conduct online auctions and virtual inspections within the required safety guidelines. The last two weekends has been a good litmus test in terms of illustrating how we can continue to conduct real estate and in many cases multiple bidders participated from the safety of their own homes."
Lucas says McGrath's balance sheet is in a strong position with approximately $10 million in cash and no debt.
"With the support of all our highly valued employees, contractors and agents, we are well equipped to successfully overcome these unprecedented times."
Since early December 2019 McGrath's share price has dived by 51.35 per cent to $0.18 per share.
Updated at 10:56AM AEST on 6 April 2020.
Author: Business News Australia