Coronavirus prompts these CEOs to give up their salaries

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A growing number of CEOs are foregoing their salaries as U.S. companies contend with financial difficulties during the coronavirus outbreak.

Coronavirus has had devastating financial consequences for hotels, restaurants, airlines and various other industries forced to alter operations to slow the spread of the virus. Social distancing practices and bans on mass gatherings have forced widespread temporary store closures.

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Without a steady source of revenue, many businesses have conducted layoffs or garnished employee wages to conserve resources. The Trump administration has worked with congressional leaders on a bailout package designed to provide much-needed relief to embattled industries and small businesses.

In some cases, top business leaders have forfeited their base salaries to ease the financial burden.

FOX Business takes a look at companies whose CEOs have given up their pay during the coronavirus outbreak below.

AMC

Adam Aron, CEO, AMC Entertainment Holdings, Inc., speaks during TheWrap’s 7th Annual TheGrill at Montage Beverly Hills on Sept. 27, 2016, in Beverly Hills, California. (Matt Winkelmeyer/Getty Images)

The movie theater chain furloughed all 600 of its corporate employees, including CEO Adam Aron, after coronavirus forced the closure of theaters nationwide.

“At this time, AMC is not terminating any of its corporate employees, however, we were forced under the circumstances to implement a furlough plan, which is absolutely necessary to preserve cash and to ensure that AMC can reopen our doors once this health crisis has dissipated,” the company said in a statement.

American Airlines

The embattled airline said company president Robert Isom would reduce his pay by 55 percent beginning in April, while other senior executives would give up 50 percent of their base salaries. American Airlines CEO Doug Parker has not taken a salary since 2015 and is compensated via stock grants.

Boeing

Boeing CEO Dave Calhoun and chairman Larry Kellner will forego their pay for the rest of 2020. In addition, the embattled company said it would suspend dividends and extend its moratorium on share repurchases.

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In the months prior to the coronavirus outbreak, Boeing shares saw significant declines as the company navigated the grounding of its 737 Max aircraft. The plane is set to return to production later this year.

Delta Air Lines

In a memo to staffers, Delta CEO Ed Bastian said he and the airline’s board of directors will give up 100 percent of their salaries over the next six months.

Dick’s Sporting Goods

The sports retailer said in a March 19 SEC filing that CEO Edward Stack and president Lauren Hobart would forego their salaries starting on March 29.

Endeavor

HOLLYWOOD, CA – NOVEMBER 17: Actor-producer Mark Wahlberg (L) and Talent agent and Co-CEO of William Morris Endeavor, Ari Emanuel attend the premiere of “Patriots Day” at AFI Fest 2016. (Photo by Gabriel Olsen/Getty Images for AFI)

Endeavor CEO Ari Emanuel and executive chairman Patrick Whitesell said they will not take a salary in 2020 as the global talent agency announced roughly 250 layoffs across its various businesses.

Ford Motor Company 

Ford CEO Jim Hackett told employees Thursday that the company’s top 300 executives will defer 20 percent to 50 percent of their pay for at least five months starting May 1 due to the coronavirus crisis. Executive Chairman Bill Ford will not take a salary for that period. The announcement comes the same day that Ford said it plans to reopen five of its North American assembly plants starting April 14.

General Electric

GE CEO and Chairman Larry Culp will give up his base salary for the remainder of 2020. David Joyce, vice chairman of GE and president and CEO of GE Aviation, will forego half of his salary. The decision takes effect on April 1.

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Lyft

Lyft cofounders John Zimmer and Logan Green said they would donate their salaries through June toward the ride-share company’s efforts to support its drivers amid a downtick in travel.

Marriott

Marriott International CEO Arne Sorenson said in a video message he would give up his salary for the rest of 2020.

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United Airlines

United CEO Oscar Munoz and President Scott Kirby are foregoing their base salaries through June as the airline contends with a reduced operating schedule necessitated by the outbreak.

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The Associated Press contributed to this report. 

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