Computacenter top brass forego salary in 'solidarity' with staff

CEO Mike Norris and CFO Tony Conophy opt out of salary for three months

Computacenter's CEO Mike Norris and CFO Tony Conophy have volunteered to reduce their salary to zero out of "solidarity" with staff put on furlough.

The executives have opted to cut their base salary to zero for a three-month period, from 1 April until 30 June, to show support to employees who have been furloughed across the business as a result of COVID-19.

Computacenter co-founders Peter Ogden and Philip Hulme have also waived their basic fee as non-executive directors from 1 April until the end of this year.

The firm last month reported a "landmark" year in its full-year results but chief exec Norris cautioned that the pandemic may cause difficulty for FY20 to achieve the same growth rate as previous years.

The decision by the Computacenter execs is reflective of a growing trend among large businesses to cut the pay of their executive board, with 10 companies in the FTSE 100 and 11 in the FTSE 250 cutting CEO pay, as well as other executives' salaries too.

Jennifer Walmsley, MD at CEO advisory firm Teneo, wrote on Linked In about the factors companies and boards should take into account when making the decision to take or make pay cuts to senior management.

"Whatever the route, getting the messaging right is vital; is this about executives sharing the pain, a cost-cutting measure, acknowledging a lack of visibility or all three? It's also key to be clear about exactly what the changes are, particularly for senior executives, rather than making vague general statements about current conditions," she wrote.

"Finally, boards need to be confident that they will be able to justify their approach. Decisions about pay for executives and for other employees must be consistent.

"Investors are already making clear they expect meaningful cuts, particularly when companies will be tapping them for additional capital or benefiting from state support."