Aeon to Cut Exec Pay for Worker Benefits over Pandemic

Economy

Tokyo, April 22 (Jiji Press)--Japanese retail giant Aeon Co. <8267> will cut executive pay and use the saved money as resources for planned special allowances to store workers who continue to serve customers amid the novel coronavirus pandemic, company sources said Wednesday.

Sixteen executives, including Chairman Motoya Okada and President Akio Yoshida, will voluntarily take a pay cut of 10 pct to 30 pct for six months from May, the sources said.

Aeon plans to offer 10,000 yen each to more than 100,000 part-timers working at supermarkets and convenience stores of the group to thank for their labor despite the risk of being infected with the virus.

Because of the fallout of the epidemic, the company expects to see a year-on-year drop of up to 76 pct in its consolidated operating profit in the current business year to February 2021.

"By sharing a sense of crisis, we hope to overcome the hardships," an Aeon public relations official said.

[Copyright The Jiji Press, Ltd.]

Jiji Press