Kvaerner, a Norwegian offshore engineering and construction company, has said its executive management will cut its salaries. The company has also placed 30 employees on temporary leave, with this number set to increase.
This is a part of the company's effort to reduce the effects fo the current situation with the Covid-19 virus, and the market situation, on ongoing operations and future business opportunities.
"Kvaerner’s Executive Management Team has decided that their own fixed salaries will be reduced by five percent from 1 April through 2020," Kvaerner said.
"Kvaerner’s CEO Karl-Petter Løken last week asked to have his salary reduced. In addition, the CEO and the entire executive management have also agreed that their variable pay program for 2020 will be canceled. In total, this represents reduced earnings of more than 40 percent for each manager in 2020, compared to their earnings in 2019," the company explained.
"Kvaerner is working to reducing costs in several areas. The company has also placed approximately 30 employees on temporary leave and expects to increase this number over the coming weeks," the company said.
“The global situation is extraordinary. I believe that all of us in Kvaerner, on all levels, now want to contribute to keep Kvaerner robust and ready to execute projects and secure jobs after this crisis.
"Kvaerner realizes values for clients and for shareholders and builds societies. Hence, we are very aware of the responsibility we have to safeguard the operations and simultaneously contribute to that the communities around us get through this time as well as possible” says Karl-Petter Løken.
Kvaerner last week said it would donate NOK 5 million to each of the municipal health authorities in Stord and Verdal, to help with the fight of the health authorities in their fight against the spreading of the virus. The company has also donated protective equipment including protective face masks and coveralls to the municipal health authorities at Stord and Verdal.