Balfour Beatty board agrees 20% pay cut

Board members at Balfour Beatty have taken a drop in salary in response to the coronavirus crisis.

Balfour Beatty board agrees 20% pay cut

The group chair, executive directors, non-executive directors and the group’s executive committee have committed to take a 20% reduction to their salaries.

The firm also announced its intention to postpone its AGM, which was due to be held on Thursday 14 May 2020.

This week, Springfield Properties, Persimmon and Morgan Sindall all revealed plans to suspend dividends to shareholders to preserve cash amid the COVID-19 outbreak.

Balfour Beatty said it “will keep the appropriateness of paying the final dividend under review until the rescheduled AGM, with a final decision dependant on the prevailing circumstances at the time”.

The contractor, which is one of the few to keep sites open, added: “The primary focus for the group is on the health, safety and wellbeing of all employees, partners and the general public.

“In line with the current guidance on COVID-19 from the UK Government, the group’s sites and contracts will remain operational where it is practical to appropriately implement the Standard Operating Procedure (SOP) issued by the Construction Leadership Council, and endorsed by Public Health England.”

Balfour Beatty said continues to benefit from the strong financial position which it has built up over the last five years. As at 25 March 2020, the group had £395 million of net cash and £375m of undrawn facilities. 

It added: “The group is focused on sustaining its inherent strengths through the present uncertainty in order to ensure it responds rapidly when normal conditions return.

“This includes not only retaining its balance sheet strength, but also its unique capabilities. Balfour Beatty constructs and maintains critical national infrastructure at the backbone of both the economy and people’s daily lives. The board is determined that Balfour Beatty will continue to contribute fully to supporting national economies and local communities, now and into the future.”

  • Read all of our articles relating to COVID-19 here.

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