Coronavirus crisis: Heathrow and IHG bosses cut own pay packets

Bosses at under-pressure Heathrow and InterContinental Hotels Group on Friday put their pay packets on the line as they sought to ride out the coronavirus crisis.

The companies have both been battered by travel restrictions implemented because of covid-19.

Heathrow, Europe’s busiest airport, said it is committed to remaining open, but warned its financial performance will be “significantly impacted by this unprecedented situation”.

Among measures to try and soften the blow, chief executive John Holland-Kaye will forgo his salary for the next three months. His basic pay last year was just under £1 million. Seven other executives will not take a wage next month.

At Holiday Inn-owner IHG, plans were outlined to cut costs by around £130 million.

Measures include reducing marketing spend and pay across the group, including “substantial” decreases for chief executive Keith Barr and finance chief Paul Edgecliffe-Johnson. Their respective annual salaries are £828,000 and £602,000.

IHG also scrapped its dividend.

Barr said: “Demand for hotels is currently at the lowest levels we've ever seen.” But he added that the industry still has long-term growth potential.