Kvaerner management cuts its salaries amid coronavirus crisis
The management team of Norwegian engineering and construction services company Kvaerner has decided to cut its salaries to alleviate the effects of the coronavirus outbreak.
Kvaerner said on Tuesday that it was implementing a broad range of precautions to mitigate the effects of the COVID-19 virus.
“Focus is on protecting life and health for people in Kvaerner, at our business partners and in the societies around us,” the company said.
Kvaerner also stated that it was working on reducing the effects on ongoing operations and future business opportunities.
The company’s executive management team decided that their own fixed salaries would be reduced by five percent from April 1 through 2020.
Kvaerner’s CEO Karl-Petter Løken last week asked to have his salary reduced. Kvaerner also last week proposed to the shareholders not to approve the previously proposed dividend of NOK 0.50 ($0.042) per share.
In addition, the entire executive management also agreed that their variable pay program for 2020 will be canceled.
In total, this represents reduced earnings of more than 40 percent for each manager in 2020, compared to their earnings in 2019.
Kvaerner is also working on reducing costs in several areas. The company has also placed approximately 30 employees on temporary leave and expects to increase this number over the coming weeks.
Løken said: “The global situation is extraordinary. I believe that all of us in Kvaerner, on all levels, now want to contribute to keep Kvaerner robust and ready to execute projects and secure jobs after this crisis.
“Kvaerner realizes values for clients and shareholders and builds societies. Hence, we are very aware of the responsibility we have to safeguard the operations and simultaneously contribute to that the communities around us get through this time as well as possible.”