Channel 4 Chiefs Set For 20% Pay Cut As UK Broadcaster Eyes $92M Emergency Credit Facility
Channel 4’s high executives, together with CEO Alex Mahon, are set to hitch different leisure trade chiefs in taking a coronavirus pay minimize because the promoting downturn begins to chew.
The Gogglebox and Nice British Bake Off broadcaster, which is sort of totally funded by the advert market, is getting ready to announce a variety of cost-cutting measures this week, which is able to embody wage reductions for senior managers and the corporate’s board.
It follows ITV slashing govt pay final week and Sky CEO Jeremy Darroch donating 9 months of his 2020 wage to coronavirus reduction charities — though Channel Four is claimed to have agreed wage cuts prior to those bulletins being made by its friends final week.
COPYRIGHT_BP: Published on https://bingepost.com/channel-4-chiefs-set-for-20-pay-cut-as-uk-broadcaster-eyes-92m-emergency-credit-facility/86924/ by Hilda Workman on 2020-04-06T11:02:43.000Z
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Channel 4’s cost-cutting plan has emerged because the broadcaster is engaged in talks with the federal government over accessing its £75M ($92M) emergency credit score facility, which is in place in case if its £180M money reserves run dry.
The credit score facility was organized in 2018 and is there as a assist mechanism in unprecedented circumstances. Sources have instructed Deadline that Channel 4’s relocation prices have left it notably uncovered to an promoting downturn. The transfer to Leeds and different components of the UK is costing no less than £50M.
Channel Four is predicted to offer an replace on the credit score facility, which it wants authorities permission to entry, and the severity of the promoting collapse when it outlines its cost-cutting measures later this week.
In a clumsy little bit of timing for Channel 4, the broadcaster paid out thousands and thousands in bonuses to workers in February on the again of its efficiency in 2019, when it managed to develop its share of viewing within the UK. Mahon and director of packages Ian Katz had been amongst these to have acquired bonuses.
A Channel Four spokesman mentioned: “Channel 4’s variable pay award for 2019 was agreed by the Board in January, reflecting the sturdy progress made final yr towards company aims. The award was communicated to all workers in January and was dedicated by way of the payroll system in February.”