While many bosses are tightening their belts and foregoing parts of their salary, for most this is to help the business survive and show solidarity with furloughed colleagues.
For Bellway, however, the pay cut that the bosses are taking – 20% for two months – will actually cost the company more; not only will the money leave the business (to go to charity instead of the director’s pockets), but they have decided that the company will match-fund the donations with a contribution to its national charity partner, Cancer Research UK.
Bellway, therefore, will be shelling out more money (albeit to a great cause), rather than saving money, through the directors’ decisions.
Bellway made a pre-tax profit of £663m last year (to 31st July 2019).
In a statement to shareholders today, the board said: “Bellway plc announces that, in light of the Covid-19 crisis and its extraordinary impact on the business and the wider economy, the board of directors have agreed to a voluntary, temporary 20% reduction in basic salary and fees effective from 1st April until 31st May 2020, which will be donated to various charities. The company will match-fund the donations with a contribution to its national charity partner, Cancer Research UK whose important work and fundraising capacity has been adversely impacted by the Covid-19 pandemic.”