Callaway CEO is forgoing his salary due to coronavirus

Callaway is "taking steps to reduce costs and conserve cash" due to the financial effects of COVID-19...

Andy Roberts's picture
Tue, 7 Apr 2020

Callaway CEO and President Chip Brewer has revealed he will "voluntarily elect to forgo" his base salary in response to the effects of the coronavirus pandemic on the company's earnings.

According to reports, the decision is part of an SEC filing from Callaway, which last week announced it will revise its fiscal year earnings guidance.

One such report in the San Diego Union-Tribune confirmed the company was now "taking steps to reduce costs and conserve cash."

The news comes just days after PGA Tour commissioner Jay Monahan revealed he was also forgoing his salary. 

In its company statement, Callaway said that Brewer "has voluntarily elected to forgo any base salary beginning with the next scheduled pay period."

Golf Digest reports: "Brewer’s base salary in 2019 was $900,000, however like many CEOs of publicly traded companies, his total compensation included stock incentives and other elements that went beyond a base salary. In 2019, his total compensation was listed at $5.8 million."

Other high-profile figures at Callaway have also made cut backs to their salaries by 20 per cent, including executive vice president and chief financial officer Brian Lynch.

Callaway's board of directors has also voluntarily elected to waive its annual cash retainer fees for 2020.

"We are proactively taking actions to significantly reduce costs and conserve cash for as long as may be required in light of current conditions," read a Callaway statement at the end of March.

"We believe the company has adequate cash on hand and borrowing capacity under its credit facilities. In addition, the company is taking significant steps to reduce discretionary spending and infrastructure costs on a worldwide basis.

"With this increased liquidity, cost-reduction actions, our geographic diversity and the strength of our brands, we believe we have adequate liquidity to sustain our business through this crisis."

 

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