Chiefs at STV – the Scottish ITV broadcaster – are renouncing bonuses and taking pay cuts of up to 20% following advertising slumps.
Rob Woodward, chief executive, will take a 20% voluntary cut in salary from 1 May until the end of the year, while George Watt, chief financial officer, will see his pay drop by 15%.
Both men have also agreed to waive their performance-related bonus, which would have been in the region of £300,000 between them, subject to meeting targets.
Chairman Richard Findlay announced the news to shareholders at the at the firm’s AGM yesterday.
He said: “We have identified a range of measures to mitigate the effects of the economic downturn and this additional decision will allow for increased investment in the business at this time.”
Other members of the leadership team will take reductions of between 10% and 15%.
The action follows a plunge in advertising bookings during April and an anticipated drop in May.
Findlay admitted the total television advertising market was forecast to be down around 20% in April and May, with STV and ITV1 trading “slightly behind the market”.