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Taylor Wimpey directors cancel pay rises and bonuses

All directors will also take a 30% reduction in their base salary or fees at least until the end of June

Taylor Wimpey -

Taylor Wimpey PLC (LON:TW.) said directors have cancelled the salary increase and bonuses they had proposed to give themselves this year.  

Having begun to close its construction sites last week as well as shutting its show homes and sales centres with immediate effect as part of the government’s coronavirus lockdown, the housebuilder also said that executive directors had requested to take a 30% cut to their base salary and pension for the duration of the shutdown.

Non-executive directors will also take a 30% reduction in their fees for the same period of time. 

If the government lockdown continues past the end of June, the remuneration committee will review director pay again.

“The objective of these changes is to conserve cash, with a particular focus on protecting the long term financial security of the business as a whole, for the benefit of all of the company's stakeholders,” the FTSE 100 company said.

Last week TW reversed its decision to propose a final dividend of 3.8p per share and a planned special dividend payment of 10.99p per share at its upcoming AGM, saving a combined £485mln.

Boris Johnson imposed the restrictions on British people's movement last Monday night, which is not only expected to curtail building output due to labour and material shortages, while planning permission is also expected to be delayed as committee meetings are postponed.

This week the mortgage market went into its own shutdown mode, with Nationwide pulling out of new deals and some lenders doing similar.

Taylor Wimpey shares fell 5% to 111.8p on Wednesday morning.

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Quick facts: Taylor Wimpey

Price: 143.6 GBX

LSE:TW.
Market: LSE
Market Cap: £4.72 billion
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