Capita CEO and CFO take 'voluntary' pay cut of 25% amid coronavirus outbreak

Capita's CEO, Jon Lewis, and his chief bean counter are taking a "voluntary" pay cut of 25 per cent for six months from 1 April in and among other "difficult decisions" the business says it will be forced to make during the COVID-19 pandemic. Lewis kicked off the memo sent to his troops on 20 March – seen by us – by saying …

[Anonymous Coward]

Fiddling while Rome burns

A mere drop in the ocean.

I could go on but the dog needs a walk. Doing that is about as productive as those two are on a good day. The Crapita was given to the company with good reason.

[Pascal Monett]

"a 'voluntary' pay cut of 25 per cent"

Sure, but that's only on the base salary, not the bonuses, pension plans or whatever else rolls down their way.

They can afford it. Hell, they can afford 75% in those conditions.

[AMBxx]

Re: "a 'voluntary' pay cut of 25 per cent"

They'll be awarding themselves a bonus for their excellent handling of their own pay cut.

Doubles all round.

[BebopWeBop]

Re: "a 'voluntary' pay cut of 25 per cent"

Trebles all round if I know Crapita

[Kane]

Re: "a 'voluntary' pay cut of 25 per cent"

"Trebles all round if I know Crapita"

That's not something I would willingly acknowledge in public.

[SVV]

Re: "a 'voluntary' pay cut of 25 per cent"

I worked it out as about a 9% cut in total remuneration, approx 1.8 million in place of 2 million if calculated that way. I'm not sure if he's expecting a medal for public service for this noble sacrifice, but I'm sure the "cost base" he's talking about having to reduce (i.e. the employees he's going to give the boot to) will be happy to do their bit for future profitability and executive bonuses.

[LucreLout]

Re: "a 'voluntary' pay cut of 25 per cent"

I'm sure the "cost base" he's talking about having to reduce (i.e. the employees he's going to give the boot to) will be happy to do their bit for future profitability and executive bonuses

Oh they'll be doing more than their bit; they'll be giving their all.

[Anonymous Coward]

Re: "a 'voluntary' pay cut of 25 per cent"

They already said a few weeks ago in another email that no one will be getting a bonus this year including higher ups

[macjules]

Re: "a 'voluntary' pay cut of 25 per cent"

An exercise in sheer cynicism. Lewis takes a 25% cut in pay but then claims back 80% from the taxpayer.

Capita knows all about how to exploit the poor taxpayer in the UK while shedding crocodile tears. Expect next to hear that Lewis has "volunteered" all his staff to work as cleaners in the worst-hit hospitals - saves redundancy payments.

[David Neil]

Re: "a 'voluntary' pay cut of 25 per cent"

The 80% payback is limited to the first £2500 a month

[macjules]

Re: "a 'voluntary' pay cut of 25 per cent"

Which is £2,500 that Capita do not have to pay him.

[Steve K]

Re: "a 'voluntary' pay cut of 25 per cent"

Lewis takes a 25% cut in pay but then claims back 80% from the taxpayer.

Claims are capped at £2500/month salary so not quite....

[Anonymous Coward]

Re: "a 'voluntary' pay cut of 25 per cent"

Aaaah. An 8.9% overall package reduction. Worth noting none of the Capita SLT in our division received a bonus...

[LucreLout]

Re: "a 'voluntary' pay cut of 25 per cent"

They can afford it. Hell, they can afford 75% in those conditions.

Yes, quite. If in a "normal" year my comp was measured by the million, in a time like this I'd commit to working for free - the aim, surely, would be to hang onto the job for when the good times roll again, which will happen one day.

Frankly, if my current gig wanted me to work unpaid for a few months I might be able to afford that and would prefer to hang on to my role. That's not something most people could afford, but the guys the article is about could probably afford to never work again - and that may well include their descendants too.

[BebopWeBop]

I expect

They will make the most of the salaries, or at least 80% of them to a limit being met by the taxpayer (after all a number of their workers can not be present (even if it makes little difference), and then as work drops off post opening up, they will so sackeroony mad.

[Chris G]

Re: I expect

I expect this is a precursor to tightening the purse strings in general while expecting all the other less well paid staff to 'pull together in these difficult times'.

After the six months, Board room pay will resume while the staff will continue to 'pull together'.

Capita's bosses should be paid on a profit related basis tied in with real savings to clients, that should put most of them on par or lower than the bloke who unblocks the boardroom toilet, something, that judging by comments from the board gets blocked regularly.

[Anonymous Coward]

Re: I expect

That might make sense. Duck and cover for now, and hope to fly under the radar when the real, non voluntary, cuts ahem, cut in.

[Anonymous Coward]

Re: I expect

Capita's bosses should be paid on a profit related basis tied in with real savings to clients,

or maybe even client satisfaction?

[IGotOut]

Hey guys...

Hey, I know you feel sad because we're going to offshore your jobs to a cheaper location, but we're all in it together. I mean, look at us, we only have a few hundred thousand a year to live on how after this paycut.

[Anonymous Coward]

doesn't yet mention redundancies

working on it, stand by...

[steviebuk]

Does this..

.. for the free advertising it gets, clearly shown by the pimping of their services and how they can help, when interviewed about this. They'll some how claim it as a charity donation so get tax relief I bet.

[Andy_Cap]

Sloughing... no wait; furloughing announcement.

Comms are out, "If you cannot work from home... your role may be furloughed in accordance with the UK government scheme."

Mass email to all yesterday. Reassuring to read.

Sloughing seems a better descriptor and a way to profitably remove dead skin.

[EddieRoutledge]

Redundancy

I work for Capita in Preston Brooke, found out today we will be made redundant September the 6th along with about 200 other staff. Sad times.