Shaftesbury PLC has announced a temporary cut to executive director pension contributions, redirecting equivalent funds to support Covid-19 efforts.

The board has agreed to waivers of 20 per cent of pension contributions for executive directors, as well a 20 per cent cut to executive director base salaries and non-executive director fees.

The waivers came into effect on 1 April 2020 and will be effective for a three month period.

The company has set up a community fund equivalent to the cost savings from the cuts, which is expected to provide support totalling £144,000.

The fund will be made available to local community partners to address immediate needs arising from the current pandemic, as well as supporting initiatives as restrictions are lifted.

Shaftesbury chairman, Jonathan Nicholls, commented: "Our commitment to our local community is long-established and integral to our values.

“The Covid-19 pandemic is presenting unprecedented challenges to patterns of life and activity, and the board's waiver of remuneration will provide additional funding to support our community partners and their important work during the current crisis."

The company has confirmed that all employees below board level will continue to receive full salaries and benefits, with no staff furloughed.

Executive directors at Prudential also announced similar cuts to their pension benefits and salaries in light of the Covid -19 crisis earlier this month, though the firm stated that this was due to the “need for continued restraint” in executive renumeration in light of the current crisis.

Meanwhile firms such as Reach PLC have made requests to defer pension deficit recovery contributions amid the crisis, arguing that this would ensure the sponsoring employer is as strong as possible to support the scheme.

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