Fox Corp. (FOXA) - Get Report will suspend or reduce executive salaries in response to the economic shutdown caused by the coronavirus pandemic, according to an internal memo sent to employees on Wednesday.
Chairman Rupert Murdoch and Chief Executive Lachlan Murdoch will forgo their salaries through Sept. 30, effective immediately.
Fox shares at last check were off 2% to $25.03.
Other executives, including Chief Operating Officer John Nallen, Chief Legal Officer Viet Dinh and Chief Financial Officer Steve Tomsic, will also forgo their paychecks.
"The rest of my direct-report executive team will reduce their salaries by 50% through the same period. And from May 1st through July 31st, 2020, our executives at the VP level and above will reduce their salaries by 15%," Lachlan Murdoch said in the memo.
Raises throughout the company are suspended, including for the board. The company has no plans for layoffs and furloughs.
Rupert Murdoch earns $5 million in salary but his compensation tops $29 million with incentives and stock, according to The New York Times. Lachlan Murdoch’s salary is $3 million, with an additional $20 million coming from stocks and bonuses.
"Following the guidance of state and local officials, we are now extending our work from home policy through May 15th," Lachlan Murdoch wrote.
"As always, we will monitor and modify our approach to returning to normal operations based on recommendations from health experts and elected officials."
He added that "we want to do all we can to continue providing your salary and benefits throughout this crisis."
And he said he was "focused on ensuring Fox comes out of this crisis as an even stronger company that will be even better positioned to inform and entertain the country in the days ahead."
The company's Fox News is responsible for the bulk of the company’s profits and has seen a surge in viewers.
Fox News had been criticized for downplaying the seriousness of the the coronavirus pandemic in its early coverage.