Sussex-based Quad/Graphics Inc. has joined the growing number of companies implementing pay cuts and reduced production in response to the coronavirus and economic challenges created by efforts to curtail its spread.
Quad’s actions include salary reductions for more than 300 leaders within the company and a temporary furlough program with company-paid medical benefits.
Joel Quadracci, chairman, president and chief executive officer of Quad, will take a 50% salary reduction and other named executive officers will see a 35% reduction. A Quad news release did not specify the magnitude of cuts and furloughs for other employees.
Based on 2018 salaries, the most recently available data, Quadracci would see a nearly $500,000 cut to his annual salary. In total, the executive cuts would add up to $1.3 million.
“We have directed employees who can work from home to do so, as well as implemented additional social distancing and sanitizing precautions to ensure the safety of our employees working in essential manufacturing facilities,” Quadracci said. “We have implemented a temporary furlough program throughout all areas of the company and have temporarily ceased operations at a number of our manufacturing facilities.”
The plants Quad has suspended operations at are not in Wisconsin.
Quad has also changed its vacation policies, delayed capital spending projects and borrowed $100 million under its credit facility.
Given uncertainty about future customer demand, Quad also temporarily suspended its 15-cent per share quarterly dividend. The company said it is committed to paying a dividend over the long-term.
“We have faced tough times before and persevered. While the COVID-19 pandemic is unique and presents uncertainty, I am confident in our ability to find a better way and weather this storm,” Quadracci said.
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