G-III management agree to temporary salary reductions
As the Covid-19 outbreak continues to cause the economy to contract, G-III Apparel Group Ltd., the parent company of DKNY and Donna Karan, has voluntarily agreed to temporarily reduce the annual salaries of top-level management, effective March 30, 2020.
Morris Goldfarb, the company's chairman of the board and chief executive officer, and Sammy Aaron, the vice chairman of the board and president of G-III, voluntarily agreed to receive no salary other than payment by G-III of their employee contributions, with respect to medical benefits and long-term disability, the company announced in a statement on March 24.
In addition, G-III's chief operating officer and secretary, Wayne S. Miller; chief financial officer, Neal S. Nackman; and executive vice president and board member, Jeffrey Goldfarb have each voluntarily agreed to a 40% reduction in their annual salary.
Effective March 30, the base annual salaries of other senior personnel will be temporarily reduced by 10% to 40%, depending upon current salary level, the company said.
Earlier this month, the company beat Wall Street expectations when it reported net income of $25.3 million, or $0.52 per diluted share, in the fourth quarter ended January 31, 2020.
The company’s quarterly earnings represented a 5% increase compared to the $24.1 million in the prior-year period, while quarterly net sales totaled $754.6 million, down 1.6% from $766.8 million in the previous year.
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