GGRAsia – Sci Games top execs volunteer pay cuts during downturn

Sci Games top execs volunteer pay cuts during downturn

Mar 31, 2020 Newsdesk Industry Talk, Latest News, Top of the deck, World

Casino equipment and lottery services provider Scientific Games Corp said the group’s chief executive Barry Cottle had “volunteered a 100-percent reduction” in base salary while the executive leadership team had committed itself to a “voluntary 50 percent salary reduction,” amid the global Covid-19 crisis that has hit many service industries including the casino sector.

A press release from the United States-based group announced the move.

Mr Cottle was quoted as saying in the announcement that the group was “working around the clock to take care of our employees, customers, shareholders and other key stakeholders in these difficult times, while providing uninterrupted products and services to those customers who continue to operate”.

The company noted it was also making a number of cost savings “to ensure stability for team members and protect the operations of the company”.

It added that some of these measures included “workforce-hour and pay reductions to preserve as many jobs as possible and furloughs for those support roles that have seen a decrease in industry work”.

The CEO added Scientific Games benefitted from having “a diverse portfolio of assets, product and services that uniquely position us to weather this crisis”.

He further noted: “Thankfully, we came into this year with a very strong liquidity position, including substantial capacity under our revolver [credit facility], and also refinanced our debt, extended our major maturities and lowered our interest expense.”

The group’s net debt for the 12 months to December 31 was US$8.6 billion, consisting of US$8.9 billion in face value of debt outstanding, less US$313 million of cash and cash equivalents, it said in its fourth-quarter and full-year results issued in February.