Live Nation has announced a series of financial moves to protect the business during the Covid-19 crisis.
The live entertainment company is aiming to cut annual costs by USD$500m (£399m). CEO and President Michael Rapino (pictured) has announced he will be giving up 100% of his $3m a year salary.
Live Nation is also implementing salary reductions across the business, with reductions for senior executives of up to 50%. President Joe Berchtold’s salary is reducing from $1.3m to $650,000, while Chief Financial Officer Kathy Willard is reducing from $950,000 to $475,000.
According to a press release, other cost-cutting measures include “hiring freezes, reduction in the use of contractors, rent re-negotiations, furloughs and reduction or elimination of other discretionary spending including, among other things, travel and entertainment, repairs and maintenance, and marketing”.
As things stand there is no mention of redundancies, with a focus on furloughing staff.
The press release added: “Given the uncertainty associated with the duration of current conditions globally, the company has launched a number of initiatives to reduce fixed costs and conserve cash.
“[Live Nation] will be re-assessing all capital expenditure projects and evaluating all other cash deployment activities.”
Live Nation CEO Michael Rapino stated: “With this additional liquidity, the flexibility in our debt covenants, and cost-cutting efforts, we believe that live nation has the financial strength to weather this difficult time.”