The chief executive of Mattioli Woods, Ian Mattioli won’t be drawing a salary from the wealth management firm until at least 30 June in a bid to control costs during the coronavirus outbreak.
Mattioli Woods directors have also agreed a 50% pay cut as part of the move, while the company has said bonuses won’t be paid this year.
The news comes as the Leicester firm says it expects “inevitable disruption” to trading in the coming months and a reduction in revenue.
Mattioli said: “In light of the uncertain trading conditions we are implementing mitigating actions to contain costs and protect our financial position. Alongside this, I have chosen to reduce my basic salary to zero and all other plc Board directors have agreed to reduce their basic salary or fees by 50% until 30 June 2020, when we will review the position further. I believe this position supports the Board’s independence and ensures a strong governance framework.
“In addition, we are reviewing our operating costs, restricting travel and reducing discretionary spending. We have confirmed to all staff that it is likely no bonuses will be paid in respect of the current financial year, providing additional resources to address the impact of Covid-19.
“Our profit outlook for the year ending 31 May 2020 remains in line with management’s expectations. The acquisition of Hurley Partners is subject to regulatory approval and is expected to complete in the second quarter of 2020. The Group enjoys a strong balance sheet and following completion of the acquisition will continue to have significant cash balances and headroom on its regulatory capital requirements.
“The Board is pleased to confirm the previously announced interim dividend of 7.3p per share will be paid to shareholders today and the Board will consider how the global crisis evolves in formulating its recommendation for any final dividend.
“The Board will continue to keep the market updated as the situation develops. The Group remains in a strong financial position and we will continue growing our business when it is appropriate to do so.
“We are passionate about looking after our clients’ financial affairs and I hope all of our clients, staff, suppliers and shareholders come out of this crisis in the best possible shape.”