House builder Taylor Wimpey has cancelled this year’s annual bonuses for its executive directors after the company closed all of its construction sites.
It will also cut the basic salaries for top bosses by 30% during the period of the coronavirus lockdown and scrap a planned annual pay rise of 2% they had been due to receive.
The statement comes after the company last week scrapped plans to pay out dividends worth £485m over coming months.
“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,” Taylor Wimpey said in a statement on Wednesday.
The company paid its four top bosses a total of just under £6.7m for 2019 including £1.6m in annual bonuses.
Chief executive Pete Redfern received just over £3m including a £663,000 annual bonus.
The housebuilder last month shut all its construction sites, show homes and sales centres.
Rivals Bellway, Persimmon and Barratt Developments later followed suit.
The latest announcement comes as businesses try to conserve cash to allow them to weather the economic crisis caused by the coronavirus.
On Tuesday evening, the UK’s biggest banks said they were scrapping dividend payouts and share buybacks after a request from the Bank of England.
Estate agent Savills joined those companies withdrawing their dividends on Wednesday.