HT Media announces deferring of salaries
Praveen Someshwar, CEO of HT Media, announced to pay back slashed amounts to employees at end of the fiscal year as per EBITDA
Earlier last week Praveen Someshwar, CEO HT Media had announced that the organization’s leadership team has voluntarily offered to take a pay cut of up to 25% this year.
In a new round of announcements through an internal mail, Someshwar said the brand is losing Rs 3.5 crore every day as the brand continues to incur all costs without any revenues.
An excerpt of the letter signed by Someshwar said, “An extension of the lockdown and its consequent impact on the overall economy will undoubtedly have an even more adverse impact on our business. We should, however, believe that the impact is short and medium-term in nature and due to the several changes that we are experiencing; our long term prospects stay unchanged. Our priority, through all of this upheaval, is to ensure that our employees and their families stay safe, continue to make our products available to our readers, listeners, viewers and customers, while we simultaneously also deliver to our shareholders’ expectations.”
In this context, the mail highlighted three important developments which were as follows.
- We are shortly launching a Corporate Insurance cover for your immediate families, details of which will be shared by HR within the next week. This is intended to ensure that the HT Family is looked after through these potentially unpredictable medical situations.
2. At a Group level, we are pushing out the performance appraisal cycle for the prior year to a later date.
3. We are also deferring salaries by transitioning components between fixed and variable in line with the following grid wef April 1, 2020:
• There will be no change in the salary structure for employees whose CTC > Rs 6 lacs annually
• For employees with annual CTC between INR 6 to 10 lacs, 5% will be transitioned from currently fixed components to variable.
• For employees with annual CTC between INR 10 to 20 lacs, 10% will be transitioned from currently fixed components to variable.
• For employees with annual CTC above INR 20 lacs, 15% will be transitioned from currently fixed components to variable
The letter said all variable components of salary will be linked to the delivery of the annual EBITDA of the company as agreed with the Board and will be paid out at the end of the current fiscal year.
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