ZURICH (Reuters) – Luxury goods group Richemont has decided not to cut employee bonuses for its fiscal year 2019/20 that ended in March, a union representative told Reuters on Tuesday.
Severely hit by the COVID-19 pandemic, Richemont initially wanted to cut bonuses for employees and management by 25% to preserve cash.
That triggered criticism after it became known at the end of May that its senior executive committee had seen its compensation for the period rise by about a third.
“At this stage, Richemont has reviewed the bonus cuts. Bonuses will be paid in full, 75% in June and 25% in July,” said Raphael Thiemard, responsible for the watch industry at Swiss union Unia, confirming a report by watch blog businessmontres.com over the weekend.
Thiemard said Richemont had also decided to continue augmenting the salaries of employees working shorter hours so they will receive 94% of their normal pay, more than they would ordinarily get under the Swiss program designed to avoid mass layoffs in instances where demand temporarily falls.
Richemont could not immediately be reached for comment.
(Reporting by Silke Koltrowitz)