Scientific Games’ leadership forgo pay as COVID-19 bites31st March 2020 8:51 am GMT
New York-listed gaming and lottery supplier Scientific Games has set up a Hardship Relief Fund to provide financial assistance to employees impacted by the COVID-19 pandemic, while its senior executives have accepted voluntary salary reductions of between 50 and 100 per cent.
Scientific Games said Monday that it is taking a variety of actions to mitigate the impact of the coronavirus outbreak, including cost saving initiatives that will reduce workforce hours and pay, which it said would the company to preserve as many jobs as possible. It will also furlough certain support roles that have ground to a halt during the outbreak.
“Like many others, our industry is facing unprecedented challenges from the widespread impact of the COVID-19 outbreak. We are working around the clock to take care of our employees, customers, shareholders and other key stakeholders in these difficult times, while providing uninterrupted products and services to those customers who continue to operate,” said Barry Cottle, chief executive of Scientific Games.
As part of the cost saving initiative, Scientific Games’ executive leadership team has agreed to a voluntary 50 per cent salary reduction, rising to 100 per cent for Cottle, who has also committed to make contributions to the Hardship Relief Fund alongside other executives.
The fund will provide short-term assistance to those employees and their immediate families who incur unexpected and onerous personal, family, or living expenses as a result of the COVID-19 crisis.
“Thankfully, we came into this year with a very strong liquidity position, including substantial capacity under our revolver, and also refinanced our debt, extended our major maturities and lowered our interest expense. We have a diverse portfolio of assets, product and services that uniquely position us to weather this crisis,” said Cottle.
“We are taking a variety of actions to help ensure that we meet the demands of this outbreak and are ready when the industry begins to recover. I am confident that the measures we are taking now will prepare us to come out of the crisis even stronger than before. And, I have never been prouder to lead a team where everyone is stepping up to help each other, our partners and our company.”
Shares in Scientific Games Corp. (NSQ:SGMS) closed up 6.59 per cent at $8.89 per share in New York Monday.