By Esther Fung
More retail property owners are taking pay cuts amid rising uncertainties of rent collection from their tenants that have been forced to close their business to contain the spread of the coronavirus.
Tanger Factory Outlet Centers said Tuesday that its executive leadership team and board of directors will be taking a temporary pay cut in an effort to avoid layoffs and to maintain healthcare benefits for all employees. Steven B. Tanger, chief executive officer of the Greensboro, North Carolina- based outlet shopping center company, will take a 50% reduction and other executive officers will take a 25% reduction. Other employees will also see a lesser reduction to their wages.
Tanger Factory Outlet Centers, which owns 39 shopping centers, had earlier withdrawn its 2020 guidance. It noted that while most stores are closed, its open air properties will be available for blood donation drives, food collection, curbside food pick-up, law enforcement and emergency medical services.
In late March, Simon Property Group said its Chief Executive Officer David Simon has agreed to temporarily reduce his base salary to zero and for other executives to temporarily reduce theirs by 25% to 30%. The mall landlord added that Mr. Simon has agreed to defer payment of his $2.85 million bonus for 2019, until market conditions improve.