iHeart Decrees Two Weeks Unpaid Vacation
• In an ongoing effort to help mitigate some of the severe economic hit caused by the coronavirus pandemic — and in lieu of further layoffs or furloughs — iHeartMedia today told employees who make over $50,000 per year and who haven’t already volunteered to take a salary reduction of 5% or more, must take two weeks of unpaid vacation between July 1 and September 30.
A staff memo from iHeartMedia Chairman & CEO Bob Pittman (below, left) and Pres./COO & CFO Rich Bressler (below, right) reads, in part, “We’ve had to make some difficult decisions which you’re aware of to address the economic impact on our company, and we have done our best to find ways to reduce that impact while avoiding layoffs. Unfortunately, the longer-than-anticipated shutdown of businesses means that we must do more, with the goal of keeping our business healthy while still avoiding permanent layoffs.
“Therefore, after reviewing all of our options, we are taking a difficult step but one that we hope will be our last action impacting employee compensation: Requiring that employees who make over $50,000 a year in base compensation — excluding bonuses, overtime or commissions — and who have not already volunteered to take a salary reduction of 5% or more, to take two weeks of unpaid vacation in calendar year 2020, with the first vacation week taking place between now and June 30 and the second vacation week taking place between July 1 and September 30. These two unpaid vacation weeks in total are the equivalent of an approximately 4% salary reduction for the year.”
The memo continues, “Please know we did not make this decision lightly. And it was a tough decision; we had hoped that business would return sooner, and we had also wanted to contain the financial sacrifice to the senior management ranks and those who voluntarily joined us in compensation reductions.”
In closing, Pittman & Bressler said, “We look forward to, and hope for, an upturn in our critical advertising revenue as businesses begin to gradually return. Finally, we want you to know how much we value and appreciate how well you’ve adjusted to our temporary work-from-home environment and the contributions you are making to help our company, our communities and our colleagues through these tough times. Thanks. Bob and Rich.”
