With the outreak of COVID-19 and subsequent lockdown and travel ban, it is the online travel portals who have been hardest hit. Besides airlines these online travel portals like OYO, GoMMT and EaseMyTrip are struggling to ensure business continuity.
Amid the uncertainty, they have to maintain liquidity and also ensure that they pay out salaries to their employees. Like many other companies and their CEOs, OYO's CEO and others from the leadership team have decided to let go all or a portion of their pay.
“Given the current business situation, which is unprecedented for our industry globally, I am foregoing 100 percent of my salary for the rest of the year. I am grateful to my leadership team, that have also taken pay cuts and support the company during these tough times,” said CEO Ritesh Agarwal.
While Agarwal is forgoing his salary for the rest of the year, the company’s executive leadership team is to take voluntary pay cuts starting from 25 percent and going up to 50 percent.
MakeMyTrip’s founders Deep Kalra and Rajesh Magow also recently announced that they will not take any salary from this month, and the rest of the leadership team will be taking a 50 percent cut in their compensation.
In other industries as well similar steps have been taken by CEOs and the leadership teams. From hospitality giant Marriott International’s CEO Arne Morris Sorenson to retailer Macy’s CEO Jeff Gennette and Chairman of the Mahindra Group in India, Anand Mahindra, among others, leaders are letting go off their salaries for a said period and stepping up to avoid any impact on jobs. It is interesting to note that leaders are thinking from a long term perspective and holding on to their most essential asset, talent and supporting them in this time of crisis.
Once all of this gets over, companies would need their people and their talent to carry on business as usual. The COVID-19 pandemic has reinforced empathy among leaders and has brought the community closer. Leaders standing up to take care of employees' financial and mental well-being amid such crisis is a good sign of leadership.
In a recent story, we deep dive into how companies across the globe have come up with a slew of measures to keep cost in check and employees on the payroll to sail through the tough times brought about by COVID-19. Here's where you can read the whole story: Keeping cost in check and employees on the payroll amid COVID-19
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