L Brands Slashes Executive Pay, Dividend Payments And Furloughs Employees

By Kimberly Chin

L Brands Inc. has cut the pay of its senior executives, suspended dividend payments and furloughed most store employees as the retailer grapples with the coronavirus pandemic.

The Victoria's Secret parent said it will temporarily shave 20% off the base salary of its senior vice presidents and higher, and will suspend the cash compensation for Chief Executive and Chairman Les Wexner and other board members. It will also defer annual merit raises.

Additionally, the company has postponed quarterly dividend payments beginning in the second quarter. Its quarterly dividend was set at 30 cents a share. Last week, the company said it has drawn down $950 million from its revolving-credit facility of $1 billion. L Brands said it has more than $2 billion in cash.

Most store employees, including those who can't work from home or can't support the ecommerce business, will be furloughed, effective April 6, the company said. L Brands will continue to grant existing healthcare benefits to its furloughed employees.

The company will also extend the closures of its Bath & Body Works, Victoria's Secret and PINK stores in the U.S. and Canada beyond its original reopening date of March 29. It didn't provide further guidance on when stores will reopen. The company said it will continue to pay employees through April 4.

Write to Kimberly Chin at [e-mail]

(END) Dow Jones Newswires

March 27, 2020 15:45 ET (19:45 GMT)

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