Preserving Cash and Supporting Employees
EssilorLuxottica: Prepare for Recovery
(Charenton-le-Pont, France, April 20, 2020) – EssilorLuxottica announces further measures to respond to the Covid-19 pandemic and prepare the Company for the recovery to come. The Board of Directors decided not to submit any dividend distribution and approved the launch of a Covid-19 fund to protect the Company’s employees.
Prescription and optical activities, which account for about 70% of Company revenue, are driven by structural worldwide needs for better vision. Experience from previous economic downturns suggests that prescription purchases will be delayed during the crisis, but not cancelled.
With this long-term view, EssilorLuxottica aims to manage a temporary decline in activity and protect its balance sheet while preparing itself to seize new opportunities in the eyecare and eyewear industry from the second half of the year onwards.
No dividend distribution and also reduction of managers’ compensations
The Board of Directors of EssilorLuxottica decided not to submit any dividend distribution to the Annual Shareholders’ Meeting of June 25, 2020. It will further assess the state of the business in the second half of the year and the efficacy of all the measures undertaken to face the Covid-19 outbreak. If the recovery is solid enough, the Board of Directors may propose a special dividend payment before the end of 2020.
The Board of Directors also asked the management team of EssilorLuxottica to work on a series of measures aimed at reducing operating and cash expenses within the Company, including the reduction or deferral of parts of its managers’ compensations. The Board of Directors voted to apply the latter measure to its own members by reducing their attendance fees by 50%.
EssilorLuxottica: Launch of Covid-19 fund
Finally, in line with the values of Essilor and Luxottica, the Board of Directors approved the launch of a Euro 100 million Covid-19 fund to protect the Company’s employees. This fund will support them and their families in need.
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