By Brittany Damico, Business Development Specialist, The Wealth Consulting Group
This week in our #WCGImpactSeries we focus our attention on companies who have exhibited exceptional corporate governance behavior during COVID-19.
From CEO’s cutting back – to completely giving up their own salaries, to large-scale donations, to major corporations eliminating stock buyback opportunities, the following list reflects examples of what a company can do to ensure its survival and sustainability in times of global challenge and volatility.
Bank of America, Goldman Sachs, Bank of New York Mellon, Citigroup, JP Morgan Chase, Morgan Stanley, State Street, and Wells Fargo – have decided to stop all stock buybacks for the 2nd quarter to ensure solvency and liquidity for their customers during the pandemic.
Dick’s Sporting Goods – Both the President and the CEO gave up their salaries for the year and the rest of senior leadership have taken a pay cut in order to help support workers.
Columbia Sportswear – The CEO has reduced his salary to $10,000 for the year and other members of the executive team have taken a 15% pay reduction to ensure their retail workers can continue to be paid.
HCA Healthcare – Numerous executives are taking pay cuts to avoid laying off employees.
Rockwell Automation – The CEO is taking a 25% pay reduction and both executive and non-manufacturing employees are taking pay cuts of varying percentages. Their manufacturing employees will receive a one-time bonus as a ‘thank you’ for working under difficult conditions.
Square– The CEO is moving $1 billion of his own money into an LLC (28% of his net worth) to fund global COVID-19 relief.
Texas Roadhouse – The CEO is giving up the entirety of his salary for the year to ensure the frontline workers are being paid.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual.
Sources:
https://justcapital.com/news/capitalism-meets-coronavirus-how-companies-are-responding/