Cochlear board, executives take Covid-19 pay cut

Senior executives and the board of hearing technology group Cochlear will take a pay cut for an initial three months in response to a revenue hit from the Covid-19 coronavirus pandemic.

Senior executives will receive a 20 per cent cut, while non-executive directors will receive a 30 per cent cut in board fees.

CEO Dig Howitt will see a 30 per cent reduction in base salary and will not receive any short-term incentive pay this financial year.

Cochlear chairman Rick Holliday-Smith said: “Cochlear is making every effort to retain its highly skilled workforce and continue to invest in its R&D programmes throughout the Covid-19 pandemic.

“Given the significant impact to sales revenue, we believe a temporary reduction in pay to the board and senior management is appropriate.”

The company has suffered a sales drop with a fall in Cochlear’s hearing implant surgeries, especially in the United States and Europe.

The company has already frozen new hires and reduced all non-essential spending and capital outlays.

“We expect that most of the delayed surgeries should proceed once hospitals resume normal operations.”

In March Cochlear raised more than $850 million in new capital from investors.

Picture: Dig Howitt

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