Apollo Tyres on Friday said its Chairman Onkar S Kanwar, Vice Chairman Neeraj Kanwar and other senior management personnel will take pay cuts, amid slowing demand due to the coronavirus pandemic.
"Chairman and Managing Director Onkar S Kanwar and Vice Chairman and MD Neeraj Kanwar...announced a 25 per cent reduction in their salary during these tough, testing times," Apollo Tyres said in a filing to the BSE.
Furthermore, the senior management has taken a voluntary reduction of 15 per cent in salary in a show of solidarity due to the rapidly deteriorating market conditions caused by the COVID-19 pandemic.
Apollo Tyres has a diversified and multinational presence and the pay cuts will affect all senior management at the global level.
Coronavirus is impacting sales and profitability across the automotive industry as anticipation builds that the worst is yet to come with COVID-19, the filing said.
"This is an incredibly difficult time for our employees and their families. We are in unchartered waters but as 'One Family' we will work together and make the necessary sacrifices to steer Apollo Tyres in the right direction, to overcome this period," Onkar S Kanwar said.
"We are experiencing slowing demand and disrupted supply chains due to COVID-19. We are working on further measures which we will provide updates on, as we make final decisions," he added.
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