COVID-19: Voluntary Pay Reductions

RNS Number : 1247J

Pendragon PLC

08 April 2020

 

8 April 2020

Pendragon PLC

("Pendragon" or the "Company")

COVID-19: Voluntary Pay Reductions

The COVID-19 virus is impacting all Pendragon owned companies - Stratstone, Evans Halshaw, Car Store, Pinewood, Quickco and Pendragon Vehicle Management - with many operations closed or severely reduced in each of these businesses. 

As of 24 March, the Company closed all of its dealership sales showrooms in accordance with Government regulation. The Company is currently operating with a reduced workforce at select dealerships to allow for the maintenance and repair of emergency service vehicles and those of frontline workers only. The required closure period will be re-evaluated on 13 April 2020.

Due to the sudden decrease in business activities and the uncertainty over its duration, Pendragon is taking a variety of actions to protect our financial position and flexibility of the Company during this difficult time, which includes:

· Furloughing over 80 percent of U.K. operating and staff employees for a 21-day period

· Starting 1 April voluntary reduction of corporate compensation until further notice, as follows:

· Board Members and Senior Leadership salary reductions of up to 20 percent;

· Upper management salary reduction of up to 15 percent;

· Other corporate and field support personnel salary reduction of up to 10 percent.

In order to support frontline medical workers, the Company will be donating the 20 percent reduction in the salary of Chief Executive Officer Bill Berman to the NHS at his request.

"My priority has been and will continue to be, the safety and wellbeing of our associates, customers and partners in the communities we serve throughout the United Kingdom.

"Supporting our first responders and frontline workers must be our priority as residents and citizens of this great country. Each day the men and women of the NHS put themselves in harm's way in order to save the lives of people they have never met. Every little bit we can do to help the NHS will make a difference," said Berman.

Berman was named Chief Executive Officer of Pendragon in February of this year. At his direction the company is donating 20,000 disposable seat covers to local health trusts and offering 25 percent off to all first responders and frontline workers for any maintenance or warranty work needed on their vehicles through the end of April at all operating Pendragon service center locations.

Enquiries
Kim Costello	Pendragon	07880 370901
Simon Allatt	Pendragon	07867 162192

 

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