Insurer to reduce pay by 20% for 70% of employees
Insurance organisation Aon has temporarily reduced the pay of 70% of employees worldwide, due to the financial constraints of the Covid-19 (Coronavirus) pandemic, effective 1 May 2020.
In an open letter to all 50,000 employees, executive officer, Greg Case outlined the organisation’s decision to decrease pay by 30% for some of its staff to avoid redundancies within the business.
Case also confirmed that around 30% of employees would remain on full pay and went on to assure employees other cost cutting measures would be put in place including a 50% reduction in salaries for all executive officers including himself, as well as Aon’s board of directors.
Case, added: “We have worked with local leaders around the world to determine the most equitable way to apply a temporary salary reduction to our broader colleague base and have developed a tailored approach based on a set of criteria, including the cost-of-living.
“Our objective is that everyone emerges from this challenging period in as good a place as possible; unfortunately, it is too early in this economic crisis to determine how we ultimately mitigate these actions.
“Our commitment is that we will act with integrity to protect our colleagues and our firm. We will continue to apply our principles-based approach to how we manage through this crisis and review these actions monthly.”