The Cato Corporation, the women’s fashion retailer, reinstated its executives’ pay after slashing salaries amid the COVID-19 pandemic and lockdowns, according to an 8-K filing with the Securities and Exchange Commission.
According to Thursday’s regulatory filing, CEO John Cato took a temporary 50 percent pay cut in April, while other executives took a 25 percent temporary salary reduction.
The retailer’s board of directors reinstated the executives’ salaries on Aug. 1, the filing shows. Meanwhile, the board of directors fees, which had also been cut by 50 percent, were reinstated, according to the filing.
Beginning on March 19, Cato temporarily closed all of its retail stores as the coronavirus pandemic began to spread.
In April, the company extended its store closures, suspended its quarterly dividend and reduced salaries for employees by 25 percent for those making above $55,000. The retailer also furloughed associates and eliminated some jobs in the corporate office.
Starting in May, the company began to reopen its stores and by June 15 the entire fleet was open.
Last week, Cato reported a decline in second-quarter revenue of 21 percent from the same quarter a year ago, while same-store sales dropped 24 percent.
Shares of the Cato Corporation were up 1.6 percent Thursday at $7.56 per share.