Henry Schein (NSDQ:HSIC) announced that it is continuing certain cost reduction measures, including payroll cuts, amid the COVID-19 pandemic.
The Melville, N.Y.-based medical device maker said in a news release that chairman and CEO Stanley Bergman agreed to extend his prior agreement to a temporary reduction of 100% of his base salary from April 6, 2020, through the end of the company’s fourth fiscal quarter.
Bergman also agreed that the extension of his salary reduction will not constitute “good reason” or breach under his employment agreement and will not confer or trigger additional rights or entitlements from him or the company or its affiliates.
Four of Henry Schein’s highest-paid executive officers serving as of Dec. 28, 2019, including its CFO, will continue temporary salary reductions at a level of 37.5% from June 29, 2020, the first business day of its third fiscal quarter, until a later date. Previously, they had taken a 50% reduction from April 6 through Jun 30.
Additionally, members of Henry Schein’s executive management committee will have their salaries reduced by 18.75% during the same period and members of management in VP roles will have salaries reduced by 7.5% in lieu of larger reductions from the prior period. The board of directors agreed to an 18.75% reduction of its non-employee directors’ cash retainer, having previously taken a 25% cut.
“The COVID-19 pandemic continues to present unprecedented challenges for the global economy,” Henry Schein said in the release. “As part of Henry Schein, Inc.’s broad-based effort to further support plans for the long-term health of its business and to strengthen its financial flexibility, Henry Schein, Inc. is continuing certain cost reduction measures that include certain reductions in payroll.
“As the COVID-19 pandemic evolves, the Company will continue to evaluate appropriate actions for its business.”
